Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Learn about Theta, the largest blockchain streaming project, and what opportunities lie ahead.

“While Web 1.0 was the early stage of the Internet (with iconic companies such as AOL and Netscape), Web 2.0 began around 2007 with the rise of e-commerce, mobile apps and social media, led by Facebook, Google, Amazon, Microsoft and Apple. And Web 3.0 is in many ways a response to the excesses and market dominance of the world’s largest technology companies” – Theta Labs
Original article: Messari Research

Over the past 20 years, streaming content has seen rapid adoption with the rise of platforms like YouTube, TikTok, Twitch and Netflix. And the Covid-19 pandemic has accelerated this trend as people around the world are forced to stay home and turn to streaming as a source of entertainment. According to Cisco, streaming now accounts for 75 percent of Internet traffic.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Content Delivery Networks (CDNs) are servers located around the world that are used to deliver Internet content, including streaming media, to consumers. Because of their proximity to consumers, CDNs are considered critical Internet infrastructure, thereby improving video quality and reducing latency. Despite their importance, CDNs have problems. Typical experiences include user overload, network strain from high-quality graphics, challenges in delivering services to remote areas, and expensive network maintenance costs. As a result, operational costs increase and are subsequently shifted to the video platform; Netflix’s CDN costs represent 20% of sales.

Introduction to Theta: The Global Mesh Network
Theta is the world’s first decentralized video network to address the shortcomings of streaming and video-on-demand using blockchain technology. Theta uses a peer-to-peer mesh network where anyone on any PC, mobile device or smart TV can voluntarily use their free bandwidth and computing to retransmit video to other users and be rewarded with tokens for their contributions. Theta video retransmitters are Edge Nodes (aka Caching Nodes), which are geographically closer to users (TVs, phones, and computers) than centralized CDN servers. As a result, Theta Network provides end users with superior streaming, lower costs for video platforms, and incentives for retransmitters to voluntarily provide bandwidth; all parties benefit from the Theta model.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Theta White Paper

Currently, Theta TV is the leading app on Theta Network, with millions of users. Theta TV is similar to Twitch in that both are live streaming platforms, but users on Theta TV can earn rewards by retransmitting streams to others at the same time. In addition, Samsung VR, Pandora and MGM are working with Theta to use the network.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Theta TV

The Theta blockchain and its supporting technology are complex and use novel consensus mechanisms and payment schemes to operate and protect the network. The Theta team and the consultants building the technology are highly qualified industry veterans.

Theta’s leadership team includes Mitch Liu, CEO of Gameview Studios, who holds a BS in Computer Science and Engineering from MIT, an MBA from Stanford University, and co-founded Gameview Studios; Jieyi Long, CTO, who holds a PhD in Computer Science from Northwestern and developed the proprietary VR live streaming technology; and Ryan Nichols, Chief Product Officer. and Ryan Nichols, Chief Product Officer and former Director of Tencent WeChat.

Advisors to Theta include Steve Chen, co-founder of YouTube; Justin Kan, co-founder of Twitch; Kyle Okamoto, Chief Network Officer at Verizon; and Jonathan Wong, Director of Product at Rakuten. In this report, we will cover Theta blockchain and technology, the Theta token, and the upcoming launch of Mainnet 3.0.

Theta’s Technology
Blockchain is not designed to store large amounts of data, such as images, video and audio. Adding streaming amplifies the complexity and the level of storage required, as streaming media may need to have the high throughput capacity to process millions of transactions per second. In addition, users in the Theta model need to be incentivized to share their free bandwidth, while remaining decentralized and secure.

Theta blockchain is designed for video and data streaming. Its blockchain uses a novel multi-level BFT consensus mechanism that allows thousands of nodes to participate in the consensus process, while still supporting the processing of a large number of transactions per second. Its consensus mechanism has two types of nodes.

Enterprise Validator Nodes: up to 30 nodes that propose and generate new blocks on the blockchain. The current list of validator nodes includes Google, Blockchain Ventures, Samsung, Sony Europe, Coin Security, and Theta Labs.

Guardian nodes: finalize blocks generated by enterprise verifier nodes and act as a check on malicious verifier nodes. Unlike Enterprise Validator Nodes, anyone in the world who meets the minimum requirements can become a Guardian Node. There are currently over 3,000 daemon nodes worldwide.

Independent of the consensus mechanism, Theta has thousands of Edge Nodes that capture live video, transcode it in real-time, cache it, and rebroadcast live streams to other Edge Nodes and/or end users in exchange for “gas fuel” from TFUEL, the Theta network (more on this later) “. Edge nodes are part of Theta’s broader vision of becoming a decentralized edge network, a distributed computing network that brings compute and data storage as close as possible to the point of request, providing low-latency and bandwidth-saving peer-to-peer sharing for any type of data.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Theta

Date: 05/14/2021

The Theta blockchain also supports Turing-complete smart contracts, which are Ethernet smart contracts ported to Theta. The combination of smart contracts and video streaming creates new use cases that benefit both video platforms and users. For example, platforms can write a smart contract that rewards the most engaged viewers, viewers can reward their loyal hosts, and users can enable payment models such as pay-per-use, while royalty distribution is clear and agreed upon.

In addition, anyone can now use Theta Token Minter to mint TNT-20 tokens on the Theta blockchain. The assumption is that stream creators can mint their own custom Theta TNT-20 tokens, customize the number of tokens and inflation schedule, and write a smart contract that rewards loyal followers with tokens. Users who receive tokens can then hold and hopefully become more valuable as the stream creator grows, or exchange tokens on Theta Swap. The combination of smart contracts, video streaming and Theta’s product suite adds a new level of interaction that has the potential to significantly increase engagement and retention.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Theta White Paper

As mentioned earlier, scaling the Theta blockchain is particularly problematic due to the highly transactional nature of streaming. To address scaling limitations, the Theta team built a resource-oriented micropayment pool to increase throughput and reduce on-chain transactions. The micropayment pool is an off-chain pool from which any user can withdraw, while preventing double-spending. For example, streamers using the Theta network can pay for video content pulled from multiple nodes without having to make on-chain transactions because they are pulled from the micropayment pool. The parameters of the micropayment pool can also be used to track the authorship of streams, thus facilitating copyright tracking.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Theta White Paper

THETA Token – Dual Coin System
Theta Network operates with two tokens: THETA and TFUEL. The THETA token has a fixed supply of 1 billion and all tokens have been unlocked since 2019.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Messari

THETA can be used for pledging and as a verifier or guardian node to protect the network. THETA pledgers receive a percentage of all TFUELs generated. TFUEL is the “gas fuel” of Theta Network, i.e. it powers on-chain operations such as paying nodes to share video streams or execute smart contracts. The cost of TFUEL is borne by the platforms that utilize Theta Network, so end users do not need to buy any TFUEL tokens. These platforms do so because they gain a larger audience at a lower CDN cost in the form of TFUEL. TFUEL will undergo some major updates with Mainnet 3.0.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Theta Network

The following is a comparison of THETA and TFUEL tokens.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Mainnet 3.0
On June 30, the highly anticipated Mainnet 3.0 will be released. Mainnet 3.0 will introduce two major updates.

Elite Edge Nodes, legacy edge nodes with collateralized TFuel. Elite Edge Nodes will have dual revenue potential: the creation of Elite Edge Nodes and a pledge bonus for uptime mining, i.e., forwarding video and data to other members of the network at a higher level of performance. Theta also revealed a 4% inflation plan for elite edge node uptime and a 5% inflation plan for verifier and guardian nodes to ensure the network can continue to scale.

Plans for TFuel destruction to offset TFuel inflation. The initial plan was to destroy 25% of all TFuel payments for the edge network, thus introducing a cost to the platform for using the network (which is still significantly lower than the cost of a traditional CDN). The destruction of 25% of TFuel payments, smart contract fees, and pledges have the potential to significantly reduce the availability of Theta.

Messari Report: From streaming to web 3.0, what opportunities are left for Theta?

Source: Theta Network

Risks
Theta operates in the streaming and video space and by nature faces stiff competition. While decentralization offers many benefits, with managed centralization, incumbents such as YouTube and Twitch will be able to act faster. The quality, scale and reputation of traditional platforms will make it difficult for content producers and users to be pulled away.

There may also be intellectual property issues, as music or videos found on Theta may be subject to copyright or licensing requirements. To address this issue, unlike pure Web3 applications, Theta does not have censorship. For example, THETAtv’s creator guidelines take a position on acceptable content. According to the guidelines, any behavior that reflects poorly on the THETAtv brand can be removed, as can TFUEL.

Finally, Theta needs to ensure that the blockchain and technology can scale. Scaling a blockchain project for video streaming is complex. The granularity of token rewards (e.g., one micropayment for two seconds of video by 10,000 concurrent viewers) already exceeds the possibilities of Ether.

Conclusion

By creating the world’s first decentralized video network to address the shortcomings of streaming and video-on-demand, Theta has grown to become the highest market cap crypto asset of its kind. Theta’s multi-level BFT consensus mechanism combined with a dual-currency model provides power, protection and funding to the more than 25,000 peer-to-peer edge nodes that make up Theta’s edge network. Theta has proven to be a force in the cryptocurrency and streaming markets; however, Theta faces stiff competition from traditional streaming giants such as YouTube, Netflix, and Twitch. To continue to gain market share, Theta needs to continue to grow its edge network, attract viewers to Theta TV, attract streamers through smart contract privileges, release new products such as Theta Dex, and successfully launch Mainnet 3.0.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/messari-report-from-streaming-to-web-3-0-what-opportunities-are-left-for-theta/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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