The Theta Mainnet 4.0 White Paper provides a sample implementation in the context of a livestream; however, the same technology will apply for an on-demand video.

“On-Demand” Video is a media distribution system which permits users to access videos without a traditional “video playback device” and without the limitations imposed by the typical static broadcasting schedule.

The core innovation from Theta is the ability of the “Theta Decentralized Delivery Network” to be able to authenticate viewers by making use of ownership of an NFT, which will be issued from a smart contract. The “viewers of the video” need to be authentic to produce real results for advertisers.  Thus, this is very important from a marketing point of view.

When a viewer requests for a video stream, the system will use an “NFT to verify” that the user who is viewing is a “valid user/viewer” of a particular data stream.

When the viewer provides the “Appropriate NFT” the data key will be provided and that will decrypts the data stream.

Thus, the “content provider” will now have the “cryptographic proof” that only the “right viewers” who have subscribed or made payment or have other authentic permissions to view are able to view the video stream.

When the data stream is accessed by an unauthorized user, it will not be possible for them to “decrypt the stream” and those who have not been authorized to view the streaming will not be able to view the underlying data without making use of the proper NFT.

Thus, “Theta Decentralized Delivery Network” opens-up a whole world of possibilities for the Web3 media, entertainment and metaverse businesses.  Those who are in business will be able to innovate and gate their premium content, in a fully decentralized way – while protecting their revenues.

Talking about the Streamer/Streaming platform, the white paper proposes who it all works as follows:

• Streamer creates NFT collection.
• Lists NFTs for sale
• Or simply airdrops NFTs to viewers
• Streamer registers new stream through Theta Video API
• On the dashboard or through the API associates the NFT collection with stream viewer.
• To watch a video stream, gated by an NFT collection, a viewer will need to first purchase or acquire the NFT and transfer it to their Metamask wallet.
• When video player loads, viewer will be asked to connect to their Metamask wallet
• Metamask prompts viewer to sign a randomly generated message.
• Signature is uploaded to prove the viewer’s wallet address.
• The key service queries the Theta Metachain with viewer’s wallet address and checks if the wallet indeed owns an NFT of the designated NFT collection.
• If the NFT ownership check passes, the key server will send the decryption key to the viewer with which video player will decode the encrypted stream.