Given recent happenings in the cryptocurrency world, I believe it is reasonable for investors to be concerned about whether anything will ever compare to Bitcoin (BTC 2.44%).
Bitcoin may be down more than 50% from its peak. Its market capitalization, on the other hand, is still north of $500 billion. As a result, many investors are understandably thinking that buying Bitcoin now would be a waste of time and money because it’s too late to realize life-changing profits. If that describes you, one cryptocurrency to look into is Theta (THETA).
Why Theta has potential
The Theta project was formed to address an increasing problem. Our internet infrastructure is being taxed by the metaverse, synchronous live streaming gaming, and higher-resolution videos. And it will continue to get worse. This is why content delivery networks (CDNs) are so popular — they speed up the internet by bringing it closer to the end consumer by distributing it farther away from their servers.
Because nodes are closer to end users than traditional CDN infrastructure, Theta may operate faster. And while traditional CDNs can be pricey, Theta is aiming to be a more cost-effective alternative.
Here’s how it works: Individuals may join the network by offering their bandwidth and staking Theta tokens. They get Theta Fuel (TFUEL -1.17%) as a reward for this service. Video platforms purchase Theta Fuel from nodes in order to host and distribute videos. In the transaction, a portion of Theta Fuel is lost. End users are rewarded with some of the crypto so that they are encouraged to view video content.
There are six levels of nodes, the most exclusive node is the Enterprise Validator Node. Sony, Google, and Samsung are among Theta’s large players at this level. These companies have big ideas. However, because these concepts will use a lot of bandwidth, it’s easy to see why they are interested in Theta.
These companies may be tempted to create their own solution to the faster-internet problem, but Theta’s concept is patented, which may be why they’re going with partnership instead.
The Theta project’s main focus is currently video streaming. However, before the year is out, the project will release its fourth major net iteration. This new version of Theta will enable new applications to take advantage of it, such as web hosting. Different apps have varying requirements when it comes to blockchain technology, which is why we have so many layer-1 blockchains to begin with. Different chains address different issues.
With subchains, Theta plans to provide greater developer freedom. Developers will be able to construct whatever they need. However, all subchains will speak Theta’s lingo and utilize Theta Fuel as a standardized gas token. This eliminates the potential for problems with bridges.