Theta Use Case
The global streaming market is huge, last measured at $376 billion worldwide. However, while there are many excellent platforms out there, costs have been rising and impact users. Centralized streaming services come with various problems that are now being tackled by decentralized projects, and that’s where Theta comes in.
What is Theta?
Theta is a blockchain network designed in 2017 to bring decentralized streaming services to everyone. Its launch was triggered by the ongoing problems facing streaming networks like Netflix, Youtube, Twitch, and others. While the platforms give people video, bandwidth issues lower the quality of services and content offered.
However, the Theta network launched a decentralized video streaming system. This network allows participants to share their unused bandwidth and, in return, earn rewards. While one computer streams videos, it can still act as a server for other computers. Decentralized streaming ensures that the streaming networks do not need to invest millions in top-tier machines. Instead, the role of video sharing is distributed thus accessible for all.
While offering services, the Theta network leverages a dual token system with Theta and Theta Fuel tokens. So what are the token’s and network’s use cases? Keep reading.
Theta Use Case: Governance
The most primary token is the Theta governance token. Governance of a crypto ecosystem involves controlling the network’s activities from within. According to their white paper, Theta token holders are responsible for voting for different activities within the ecosystem. Other activities within the network will also require a vote of the average investor.
When making development plans, holders will vote on the best project possible. Hence in the long term, the Theta token will help in governance. Token holders can vote based on the number of tokens they hold.
One of the major development goals is the decentralized TV system. As it stands, Theta network already has a Theta TV, which helps in streaming videos.
However, the main intention with Theta is to bring other video streamers like youtube, Twitch, and others to simplify their streaming services. The development goals connected to expanding the decentralized streaming network will all be done by a group of Theta token holders.
Theta Use Case: Dapp Support and Gas Fee Payment
When it comes to the Tfuel token, it’s very relevant in the platforms’ video stream activities. Theta Fuel is the operational token of the Theta ecosystem in that it is used for payments for video streams.
One use case of this network and its tokens is the support for smart contracts. The Theta Ledger is compatible with EVM, hence can effectively work with smart contracts. Ethereum virtual machine (EVM) allows developers to create smart contracts on the Ethereum chain.
Ethereum virtual machine is the primary tool that enhances support for smart contracts and decentralized applications in Ethereum. The smart contract support will enable developers to create Dapps connected to video streaming services.
The EVM compatibility will make it possible to leverage both Ethereum and Theta chains when developing Dapps. You can also migrate Dapps from and to the Theta chain.
In the case of smart contracts, the Theta Fuel coin is the main asset that helps in gas payment to power the decentralized apps. When Dapps operate on Theta network, they will obviously consume resources, mostly computational power. Often blockchains charge gas fees as computational power. The theta network requires developers to pay the gas fee using Theta Fuel.
Theta Use Case: Payments for Streaming Services and Royalty Distribution
Video streamers will leverage Theta to build contracts for a streamlined payment consumption model. The systems used as payment models by streaming sites could be unfair to some people. Today, the model is a subscription system. A user can subscribe for either annual or monthly subscriptions.
However, another use case of this Theta network is ensuring the payment system is quite streamlined. They will be using the pay-as-you-go system or pay-per-use. As you entertain yourself, you only pay for what you consume. By using such a system, content creators will gain direct income from their content.
Theta has a property for tracing micropayments and video segments by leveraging the available smart contracts. In this way, there will be a fair distribution of royalties to the content creators.
The governance token Theta will play a major role when making decisions connected to payments. Contrarily, Theta Fuel is an internal payment asset for the services offered. Hence, artists can get Theta fuel tokens as rewards/royalties for their excellent work.
Theta Moving Forward
This guide has explored the Theta Token and ecosystems, focusing on today’s uses. Theta token is mainly for governance, while Theta Fuel helps in all other operational activities. Theta is one of the tokens that financial analysts and crypto enthusiasts are watching. It has been a source of great price surges in the recent past, and experts expect more in the future.
So expert analysts predict that the Theta token could hit $100 in the next four years. However, that will only happen if the token gains vast adoption in the Theta network. As the video streaming network gets new users, the Theta token will gain demand.