Theta Token (THETA)
What is Theta Token?
Theta aims to enhance video streaming by decentralizing content delivery networks. Theta tokens incentivize users to share their unused bandwidth so that other users can stream content more easily.
What problem does Theta address?
- Video stream quality is limited in developing countries.
- Delivering video content is expensive.
- There is a lack of transparency between digital advertisers, influencers, and users.
What is Theta’s solution?
Theta plans to use Theta tokens to encourage users to share their unused computing and bandwidth resources as caching nodes for video streams. A cache is a place to store something, in this sense, it is for storing video data. A user experiencing choppy video buffering could gain access to a data cache in exchange for some Theta tokens.
As a byproduct of increased use of peer-to-peer caching nodes, video streaming sites will depend less on content delivery networks, which lowers the cost of providing video content.
Theta plans to implement something called Proof of Engagement (PoE) to ensure that users (not bots) are watching videos. With PoE, advertisers can verify who is watching their videos more transparently, and also reward users who watch ads with Theta tokens.
How does it work?
The technology to share broadband and provide cashing nodes is unclear. Additionally, the Theta whitepaper does not state how Proof of Engagement will ensure that viewers are real users and not automated bots.
Why does the Theta token have value?
When Theta’s protocol is fully implemented, the Theta token will be used to pay for advertising campaigns and buy premium products, services or goods (access to specific videos, chat functions, merchandise).
Why does Theta need its own cryptocurrency/blockchain?
The official Theta FAQ states the main reasons are to incorporate specific features for streaming video such as off-chain micropayments for video streaming and enabling Proof of Engagement.
Who is the team?
Theta Labs is owned by Sliver VR Technologies, which is an esports entertainment platform. Sliver plans to integrate its platform with Theta. Sliver has more than 5 million unique monthly visits. More specifically here is a snapshot of their team from their website:
They also have advisors such as Justin Kan, the co-founder of twitch, Steven Chen, co-founder of youtube, Ma Haobo, CEO of Aelf, Steve Dakh, a founding member of Ethereum, and more.
The idea behind decentralizing content delivery networks excites us but Theta is too early in its road map to determine how likely Theta will be able to achieve its goals. We like how it is integrated with Sliver.tv but Theta’s current features on Sliver.tv do not represent the features that are mentioned in its whitepaper. BlockWolf will provide an update after Theta releases its testnet, which is scheduled for June 2018