State of BitTorrent Chain H1 2024

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Key Takeaways

    As someone who grew up in the early days of the internet, I can vividly remember the thrill of discovering BitTorrent and being part of a community that revolutionized file sharing. The idea of decentralization was both exciting and empowering. However, like many others, I’ve seen the landscape change drastically with the rise of streaming services and cloud storage apps.The BitTorrent Chain serves as the foundational framework, motivating various BitTorrent offerings including the classic BitTorrent torrent tracker, the BTFS file system for storage, and the DLive streaming service.

    As a protocol analyst, I’d describe BITTORRENT CHAIN (BTTC) as a versatile, cross-chain solution that facilitates effortless interaction between Ethereum, TRON, and BNB Chain networks. Unlike traditional blockchains, BTTC employs a multi-layer architecture to ensure smooth asset transferability between these platforms.

    The $BTT token holds multiple functions within the BitTorrent ecosystem. It serves not only for covering gas fees but also accelerates file distribution. Additionally, it is employed to remunerate validators, pay for BTFS storage, access BitTorrent X services, act as collateral on JustLend DAO, perpetually hold value on SUN, and even serve as legal tender in Dominica.

    BitTorrent’s decreasing market share could pose a challenge for BTTC and $BTT, as they are designed to capitalize on the BitTorrent user base. However, with fewer users participating in file-sharing, their potential growth may be limited.

    As a researcher studying the digital file-sharing landscape, I’ve observed that although BitTorrent has experienced a decrease in market share compared to its competitors, it continues to maintain a substantial presence in the absolute sense. In response to these market challenges, the BitTorrent team is considering two strategies: embracing the Decentralized Peer-to-Peer (DePIN) trend and integrating Bitcoin into their platform, BTTC.

What is BitTorrent?

“This topic offers a multifaceted and engaging exploration beyond its initial impression.” As for the description of BitTorrent, you might consider: “BitTorrent encompasses not just the original torrent client but also additional components such as BitTorrent Chain, $BTT token, BTFS file storage system, BitTorrent Speed torrent client, and DLive streaming platform.”

Torrent Tracker

BitTorrent is a protocol introduced in 2001 for transferring data over the internet. It allows users to download files from multiple sources at once, enhancing the speed of the process. The system links up file sharers, referred to as peers (receivers) and seeders (providers). When peers obtain a portion of a file, they transform into seeders and begin distributing it further.

BitTorrent, with its vast user base numbering in the millions, confronted financial hurdles due to its distribution as a free service and frequent use for sharing unauthorized content. Nevertheless, the platform persistently pursued inventive methods to generate revenue. In 2007, they launched an entertainment store, while in 2013 they aimed to compete with iTunes and Amazon. Although these endeavors didn’t yield substantial profits, BitTorrent’s continuous technological advancements and introduction of paid tiers underscored their dedication to growth and delivering value to their users. The advent of free alternatives based on the same open-source technology serves as a testament to BitTorrent’s significant influence in the digital realm.

BitTorrent Chain

Justin Sun’s acquisition of the BitTorrent protocol and its brand for $140 million in 2018 was due to the absence of a profitable business strategy. However, with tokenization emerging as a potential solution to monetization issues, BitTorrent introduced BTT as a native TRON-based token using the TRC-10 standard in February 2019. Later, in December 2021, they launched their own blockchain, named BitTorrent Chain (BTTC).

Instead of being a single, independent blockchain like typical ones, BTTC functions as a multi-layered cross-chain protocol built on the Tron network. Its primary role is to facilitate effortless asset transfer between various blockchains, such as Ethereum, TRON, and BNB Chain. The technical explanation of BTTC would be a heterogeneous interoperability solution constructed on the Tron platform, utilizing Proof of Stake consensus mechanism, and offering compatibility with EVM smart contracts.

The architecture of BTTC includes a three-layer system:

    The Staking Layer, also known as Root Contracts, is responsible for managing smart contracts on networks such as TRON, Ethereum, and BNB Chain. Through this layer, tokens from these blockchains can be linked to BTTC using deposits. In turn, BTTC becomes capable of supporting over a hundred different tokens via the BTTC Bridge.

    The Validator Layer in delivery handles the verification process. It ensures the legitimacy of blocks, designates block producers, and generates checkpoints. validators commit their stake in $BTT on the TRON network. They subsequently gather blocks produced by the block-producing tier into a Merkle tree structure.

    The Block Producer Layer is responsible for assembling transactions into complete blocks in our system. Notably, the identities of those who create these blocks are periodically rotated. Once produced, each block undergoes validation by Delivery Nodes. Moreover, checkpoints comprised of Merkle tree summaries of multiple blocks are submitted to TRON, Binance Smart Chain, and Ethereum for confirmation.

BitTorrent File System (BTFS)

In simple terms, BTFS is a decentralized file storage platform where users can lease out their device’s storage space to the network for data storage and get rewarded with tokens. At the same time, users can also rent storage from others in the network. The system can be accessed through BTFS Finder, a search engine for files. Beginning June 25, 2024, the rewards for storage miners have been reduced by half, from 15 billion BTT to 7.5 billion BTT.

BitTorrent Speed

BitTorrent Speed is an advanced torrent client that remunerates seeders with $BTT tokens for faster file sharing. This client operates by placing bids for $BTT tokens to incentivize seeders, resulting in swifter download speeds. The longer you participate in seeding, the more potential rewards you can earn, creating a financial motivation for contributing to the torrent community. At present, only the web version is accessible, which includes a built-in torrent search engine and RainberryTV – a free streaming platform boasting 20 live channels and over 100 content partners.

DLive Protocol

DLive is a streaming content protocol where viewers can earn $BTT tokens just by watching. In return, broadcasters can increase the reach of their content for a minimal fee and receive donations from their audience. BitTorrent took over DLive in 2019, leading to an ecosystem that benefits both parties. The platform’s relaxed content moderation policy has drawn numerous individuals and communities who value free speech, including alt-right activists and gamers, making it a compelling alternative to stricter platforms like YouTube and Twitch.

BTT Token

As a token analyst, I’d rephrase it this way: In February 2019, I came across the $BTT token which is based on the TRC-10 standard of the TRON blockchain. Its total supply was set at an impressive 990 trillion tokens upon launch.

Among the total allocation, investors received a share of 17%. The remaining 43% was assigned to developers and their partners, which include BitTorrent Team, BitTorrent Foundation, and TRON Foundation. A significant portion, amounting to 19.9%, was dedicated for the advancement of the ecosystem. Furthermore, 20.1% was distributed among users through airdrops. The users were divided into two groups: BitTorrent users received 10%, while TRX token holders secured a slightly larger share of 10.1%. These tokens will be released over a six-year period.

The introduction of BTTC protocol enabled the $BTT token to conform with TRON’s TRC-20 standard, and it was also adopted on Ethereum (ERC-20) and BNB Chain (BRC-20). During this upgrade, token contracts were deployed, and existing $BTT tokens were replaced with new ones at a 1:1000 exchange rate. This process boosted the total supply from 990 billion to 990 trillion while maintaining its market worth.

Based on publicly available information, the majority of the token supply has been made accessible in the market up to this point. However, there are still tokens being released until the year 2025. Furthermore, partnership tokens will continue to be unlocked till the year 2028.

At first, the $BTT token primarily served the purpose of facilitating faster file distribution in the BitTorrent Speed app through payment. Following the introduction of BTTC, however, the significance of $BTT extended beyond this function, now being essential for network management and gas fee transactions. Over time, the utility of $BTT has grown, and it currently serves the following roles:

 

  • Paying gas fees

  • Rewarding validators

  • Paying for file storage on the BTFS network

  • Purchasing various services in BitTorrent X products

  • Serving as collateral on JustLend DAO

  • Acting as a perpetual asset on the SUN platform

  • Functioning as legal tender in Dominica

Market Performance and Network Usage in H1 2024

From January to June 2024, the price behavior of $BTT closely followed that of $BTC, reflecting the influence of broader market patterns. Whenever Bitcoin rose, so did $BTT. But when Bitcoin’s advance paused and sideways movements set in, many altcoins, including $BTT, started to slide.

In many situations, the cost of a native token aligns with the level of network activity. This means that as more people utilize the network and associated products, the value and incentive of the token increase. Conversely, this phenomenon seldom occurs in reverse within the crypto sphere.

Regarding the expansion of new addresses, the rate of increase has leveled off during the previous half-year. To keep the growth going, we need to identify and address the factors hindering progress. Let’s examine these obstacles and consider potential solutions that could reinvigorate growth.

However, in the first half of 2024, BitTorrent Chain has reached several notable milestones:

  • Listings on Bitfinex, Mercado Bitcoin, and Bitci Borsa.

  • Official partnership with HTX DAO.

  • Integration with DEXTools.

Challenges to Handle for BitTorrent

BitTorrent continues to be widely used, with approximately 170 million active users sharing software, music, films, and other digital files. In 2020, BitTorrent Inc.’s software was installed on more than 2 billion devices in total. Based on SimilarWeb data, the company brings in a substantial annual income, estimated to be between $15 million and $25 million.

In contrast to its past dominance, BitTorrent’s usage has waned considerably in comparison to other internet activities. Back in 2004, this file-sharing protocol accounted for a remarkable 35% of all internet traffic. At the time, peer-to-peer file sharing was the leading cause of internet traffic due to the limited offerings of alternative services with substantial bandwidth. However, the landscape has shifted dramatically since then. According to Sandvine’s 2024 Global Internet Phenomena Report, cloud storage and video/streaming services have surpassed BitTorrent significantly. The emergence of popular platforms like YouTube, Netflix, and TikTok has diminished the importance of peer-to-peer file sharing. Even within the realm of digital piracy, streaming has supplanted BitTorrent, resulting in a substantial loss of market share for this once influential protocol.

Despite being overshadowed on fixed devices by cloud storage apps, FaceTime, Google services, and YouTube, which collectively account for more than 4% of upstream traffic, BitTorrent still holds some significance. Conversely, on mobile devices, BitTorrent has slipped out of the Top 10 in terms of usage.

BitTorrent’s user base is a key strength for BTTC and $BTT, but as fewer people use file-sharing networks, these tokens may encounter difficulties. The incentives offered by the $BTT token, which previously encouraged users to seed files, are now less enticing. Furthermore, with internet traffic moving towards cloud storage and streaming services, the need for decentralized file-sharing protocols like BitTorrent seems to be decreasing, potentially threatening the relevance and market success of BTTC and $BTT.

How BitTorrent Can Find a Better Market Fit?

Though BitTorrent experiences a decrease in relative market share, it maintains significance and popularity in terms of absolute usage. The team has effectively addressed market pressures by incorporating streaming services into their platform and broadening the applications for BTT and the BTTC network. These strategic moves enable BitTorrent to stay responsive to evolving user requirements and technological advancements.

First DePIN project

As you’re probably aware, DePin is the latest buzzword in the crypto world. It stands for Decentralized Physical Infrastructure Network. The concept involves using blockchain technology and token incentives to create decentralized networks of physical devices. The idea is to allow individuals and communities to contribute to and benefit from these networks, rather than relying on centralized corporations or governments.

As a researcher studying emerging market trends, I’ve observed that the DePin phenomenon has yet to fully materialize. However, when the next wave of excitement hits this space, it will be challenging to identify a more fitting contender for investment than BitTorrent. With its long-standing history as a trailblazer in file sharing, BitTorrent presents an intriguing opportunity for those looking to capitalize on the future developments in this field.

Bitcoin Integration into BTTC

TRON, the foundational blockchain behind BTTC, is exploring the adoption of a Bitcoin Layer-2 solution to facilitate a wrapped form of Tether (USDT). In February, Justin Sun disclosed plans for this initiative, highlighting BTTC as a crucial component within the outlined strategy.

As a crypto investor, I’m excited about the upcoming integration between TRON and Bitcoin. This connection will allow TRON to tap into Bitcoin’s impressive $55 billion market cap, invigorating Bitcoin’s financial landscape for me and fellow investors.

The person spoke about a probable scheme that includes wrapping USDT into a new product on the TRON platform, with over half of USDT’s $104 billion in circulation being hosted by TRON on various blockchains.

The BTTC Bridge project, which is currently only a concept, is anticipated to be a key component of our plans. By integrating this solution, we expect to bring in new users to the BTTC platform and broaden its applications, particularly in the realm of decentralized finance. Picture earning rewards in Bitcoin ($BTC) for streaming or file sharing.

Output

In the BitTorrent network, the BitTorrent Chain (BTTC) plays a crucial role, linking together various elements such as the classic torrent tracker, BTFS file repository, and DLive streaming service. Although it faces competition from contemporary solutions like cloud storage and streaming providers, the original BitTorrent torrent tracker endures with approximately 170 million active users and substantial yearly income. The value of $BTT tokens and BTTC has broadened through introducing fresh incentives.

To keep up-to-date with the latest market trends, BitTorrent has incorporated streaming services into its platform and is exploring innovative applications for $BTT and BTTC. The proposed introduction of a Bitcoin L2 utilizing the BTTC Bridge could introduce significant liquidity and draw in new users, thereby expanding BTTC’s significance within decentralized finance. By embracing technological advancements and capitalizing on its vast user base, BitTorrent Chain aspires not only to remain current but also to prosper in the ever-changing digital world.

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2024-07-22 14:40