The Beginner’s Guide
Livepeer is a network built on Ethereum for converting live and on-demand video.
LPT distinguishes itself from traditional video streaming services like YouTube by not hosting, storing or distributing video. Instead, Livepeer is developing technology that uses extreme computing power to more efficiently share video from broadcasters to consumers.
Video streaming is the main source of internet bandwidth usage worldwide. And some reports suggest that it accounts for 80 percent of global internet usage. The biggest cost for video publishers lies in transcoding, which is the process of converting and reformatting raw video to make it playable across multiple devices and networks, from pocket-sized smartphones to larger-than-life billboards.
Livepeer gives broadcasters access to thousands of distributed processors. It aims to disrupt the video transcoding market by allowing app developers to create videos in a secure, efficient and affordable architecture.
Securing the LPT network at the heart of its ecosystem. And there is the Livepeer Token (LPT), which is used to coordinate the job responsibilities of those supporting the video encoding process.
How Does LPT Work?
Livepeer’s distributed architecture for delivering video content centers around the key role of “orchestrators”. Converting videos on behalf of contributors, paying publishers and developers with sufficient computing power. And they can be regulatory by allocating resources to distribute.
Take, for example, an app developer building a platform using the Livepeer protocol dedicated to live streaming high school basketball games on demand. The team’s coach, wanting to broadcast the match, would log in and hit the record, never worrying about the technical complexities that Livepeer was handling behind the scenes.
Meanwhile, Livepeer’s editors, those with excess computer resources, encode the event for different networks and devices. Orchestrators should stake Livepeer tokens (LPT) first to ensure they are doing quality work. While LPT is the protocol token that coordinates how work is distributed over the network. It is important to note that there is no exchange token tool for paying for services within the Livepeer protocol.
Livepeer recognizes that not all LPT owners have the expertise or computing power required to fulfill the role of an orchestrator. Thus, the role of “representative” was created. Delegators choose to share their LPTs with orchestrators they believe contribute to quality and honest work in the video transcoding process.
Both regulators and delegators receive fees paid by video publishers for their role in providing a high-quality and secure network. These earned fees, which can be paid with a stablecoin like Ether or DAI. It is directly proportional to the amount of LPT regulators and degerators that have a share in the Livepeer protocol. Livepeer also mints new tokens shared between agents and orchestrators every 5760 Ethereum blocks, which Livepeer calls a round.
Who Created Livepeer?
Livepeer was created in 2017 by Doug Petkanics and Eric Tang.
The Livepeer team did not hold a coin sale to distribute the LPT token. Instead, some LPT as well as a long-term development fund were distributed among the community, the founders, and the first team members.
Why Does LPT Have Value?
As the native token of the Livepeer network, LPT is critical for various use cases on its network.
Users may find the censorship-resistant nature of decentralized architectures such as Livepeer. And unlike established, centralized services like Youtube, Twitch, and Vimeo, it has value and stops. The Livepeer team notes that these services may come under pressure from companies or governments to modify, remove or refuse to stream certain videos. However, as a backend technology, LPT leaves that responsibility to the publishers and app developers who use their systems.
Additionally, Livepeer has a pay-as-you-go content consumption approach. It means that users do not need to pay regular subscription fees for services they do not use. The Livepeer system also allows creators to earn more from their creations as the need for costly intermediaries is reduced when sharing video from broadcasters to end consumers.
App developers can also take advantage of LPT. The distributed nature of the network allows them to more efficiently handle network usage spikes in their applications. And it allows them to reduce the need for more expensive transcoding services while scaling videos for various devices and networks.