Theta is a potentially promising cryptocurrency with a focus on video streaming. This is exactly what THETA wants to improve – in all respects: Both content creators and viewers should benefit from THETA. With this promise, the coin has been in the crypto top 20 for quite some time (currently at number 17). Time for a THETA analysis. We introduce THETA and say: How does THETA work? What distinguishes THETA? Who is behind the cryptocurrency? Is an investment still worth it? And: What are the price forecasts for THETA?
What is theta (THETA)?
Theta (THETA) is a blockchain network developed from scratch specifically for video streaming. Launched in March 2019, the THETA mainnet acts as a decentralized network where users can share content with each other on a peer-to-peer (P2P) basis.
According to the developers, THETA aims to drastically improve the video streaming industry in its current form. Background: Most services of this kind are centralized, have a poor infrastructure and therefore only allow the end consumer a suboptimal experience, according to the THETA team. Content creators are also at a disadvantage, as they generate significantly less revenue than would be possible due to the monetization concept (which provides the majority of revenues for the respective platform).
Simply put: The essence of Theta is to decentralize video streaming. It should be more efficient, more cost-effective and fairer.
How does Theta (THETA) work?
THETA allows users to watch video content and earn token rewards by transferring videos to other users who watch the same content. Thus, users provide their free bandwidth and computer resources to share videos with other users and earn token rewards for their contributions-as with other sharing economy models.
Why is theta (THETA) special?
As mentioned, Theta wants to turn the gigantic streaming market around. One unique feature of Theta is that no complex streaming hardware is required to participate in the THETA network and earn tokens. It is enough to have a mobile phone or even just a Smart TV to contribute to the Theta network. Video platforms should be able to reduce the costs of video delivery and generate additional revenue through the integration of Theta. With Theta integration, streaming portals need to spend less money on their infrastructure-capital that can be used for user incentives. In this way, according to the THETA team, Theta-enabled video platforms have the opportunity to grow their user base and gain market share.
According to the developers, the Theta blockchain mainnet also offers support for Turing-complete smart contracts, which opens up a whole range of possibilities for the THETA network. These include, for example, proof of ownership of digital items, transparent license distributions, crowdfunding mechanisms and more. This should create many social and economic opportunities for interaction.
What is the THETA token?
The Theta network uses a so-called dual token design: THETA and TFUEL. difference: The Theta Token (THETA) is the governance token of the Theta protocol. THETA is used for staking as a validator or guardian node. This secures the network and contributes to block production. Users then receive a proportional share of the newly generated TFUEL by staking and operating a node. The number of all THETA is set at a maximum of 1 billion.
Theta Fuel (TFUEL), on the other hand, is the operational token of the Theta protocol. TFUEL is used for on-chain operations and is used, for example, in payments (for example, to so-called edge node relayers for the release of a video stream or for the provision or interaction with smart contracts – similar to Ethereum). These relayers earn TFUEL for every video stream they provide to other users on the network.
Similar to the gas in Ethereum, Theta Fuel is also the fees of the protocol. 5 Billion TFUEL was minted using the Theta blockchain. Since then, the stock increases annually by a fixed percentage (this is determined at the protocol level).
With the upcoming version 3.0, however, THETA is planning fundamental changes in this regard. For the use of the Theta Edge network, new TFuel burns incur costs-namely a “network fee”. The developers about the step:
“Since the launch of the Theta network two years ago, we have recognized that there is significant value for video platform partners through content delivery networks (CDN), in the form of cost savings, increased user activity, and revenue from shifting infrastructure costs towards rewarding users. All these advantages arise for the platform partner at virtually no additional cost.“
In the future, with Theta 3.0, part of every TFuel payment to the Edge network will be burned at the protocol level. In the long term, the existing TFUEL could be significantly reduced. The mechanism sounds familiar to you?
The THETA team admits itself: The “TFuel Burning” concept is similar to the Ethereum EIP-1559 upgrade. This will soon also introduce a deflationary mechanism that reduces ETH supply. This mechanism not only ensures the long – term security of Ethereum, it also ensures a shortage of ETH in circulation-and that, in turn, could have a positive effect on the price.
Who invented theta (THETA)?
Theta was founded in 2018 by Stanford graduate Mitch Liu and computer scientist Jieyi Long. Liu has extensive experience in the gaming industry and was a co-founder of the mobile social gaming studio Gameview, among others. He holds a BSc in Computer Science & amp; Engineering from the prestigious Massachusetts Institute of Technology (MIT).
Long, on the other hand, has a degree in microelectronics and developed several patented technologies, including VR live streaming and instant replays for video games.
In total, numerous well-known names work on the THETA protocol. For example, personalities such as Steve Chen, co-founder of YouTube, and Justin Kan, co-founder of the streaming platform Twitch, are listed as consultants to the project.
THETA Price Forecasts 2021 – 2026
In December 2020, the THETA makers announced “Theta 3.0” – including a new cryptoeconomic design for TFuel, introducing staking and burning. This is intended to greatly expand the capacity and use cases of the network and maximize the utility of TFuel. The mainnet version 3.0 is scheduled to be launched on June 30-in nine days (at the time of this article). It remains to be seen whether the event is already priced in or whether further jumps in the theta price are to be expected in the short term. This is currently at $ 7.45, 53% below the all-time high of $ 15.90.
What are the THETA price forecasts?
- CoinCodex.com is generally bearish regarding theta token price prediction. 8 technical analysis indicators therefore give bullish signals, 19 bearish signals.
- WalletInvestor.com is bullish on THETA. The THETA 1-year price forecast sees the price rise to $ 19.87 within twelve months. This represents an increase of 166%. The 5-year price forecast is also confident: a THETA rate of 66 dollars is predicted here.
- Also DigitalCoinPrice.com predicts continuous growth for the Theta token. Only in 2027, the forecast model predicts a slight decline in the price of theta. Theta will rise to $ 11.23 in 2021, then to $ 13.08 in 2022. In the course of 2025, Theta then breaks through the $ 20 limit and even rises to $ 25.89 in 2026.
- Gov. Capital also predicts only positive: in the next 12 months, THETA is forecast to rise to $ 14, and the 5-year price forecast sees THETA at $ 47.92 by 2026.
- Rather cautiously falls the prediction of LongForecast.com off: in 2021, Theta moves up to $ 10.12. in 2022, the coin is more likely to depreciate and at the end of the year only just above 10 dollars. In the course of 2023, THETA will see smaller pumps again and again, and in exactly four years, Theta will be trading at $ 22.14.
Last updated on June 21, 2021
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