Summary

Livepeer is a decentralized video protocol built on the Ethereum blockchain. It is designed to allow anyone to seamlessly integrate video content into applications in a decentralized manner at a fraction of the cost of traditional solutions. Decentralization of video processing is accomplished by distributing the transcoding process to a network of node operators. Transcoding is an important step to ensure smooth delivery of video content to the end user. This includes taking the raw video files and converting them into the best state for each end user, based on factors such as device screen size or internet connection.

Livepeer uses blockchain technology to process video content, which is reliable and cheap. The technology uses game theory, cryptocurrency economic incentives and Smart contracts facilitate active interactions among stakeholders. Its native asset, Livepeer Token (LPT), is used to safely and reliably coordinate and distribute video processing tasks among network participants.

Introduction

People are increasingly relying on social media, especially after the outbreak, coupled with the massive growth of the creator economy, so video-related content uses the Internet in 2021 More than 82% bandwidth.

Because there are thousands of distributed nodes supporting the Livepeer network, the Livepeer network is able to support video application developers and creators Provide access to secure, high-quality, affordable coding infrastructure without paying a fortune. The Livepeer network was founded in 2017 and has processed more than 150 million minutes of video to date.

How does the Livepeer network work?

Livepeer is built on Ethereum and is essentially a platform for connecting demanders and service providers seeking video processing. kind of network. Compared with current centralized solutions, Livepeer uses the native token LPT to incentivize network participants to provide reliable, secure and affordable video transcoding services.

The Livepeer network has two main stakeholders: coordinators and principals.

Coordinator

Anyone with video mining equipment can stake their LPT on the Livepeer network and undertake video processing work. In return for providing services, they receive a share of the video processing fees in the form of LPT and ETH. These network participants are called coordinators.

Principal

People without video mining tools or video processing experience can still participate in this network by delegating or assigning their LPT to node operators with the appropriate tools and expertise, represented by They process videos through Livepeer Explorer. These network participants are called principals.

What is LPT?

Livepeer network’s native asset Livepeer Token (LPT) is an ERC-20 token used to ensure security and Video processing tasks are distributed among network participants and incentivized to actively participate in various roles on the Livepeer network. The more LPT tokens that power network functions, the more stable, secure and robust the network will become.

The work assigned to the coordinator is related to the amount of LPT they stake (their own or the client’s LPT), and also related to their Geographical location is related to reliability. Because more delegated tokens means more work, and more work means higher rewards, coordinators will compete with each other to attract more delegates.

At the end of each round (i.e. at the end of each day), the Livepeer protocol mints new Livepeer tokens based on the specified inflation rate. Livepeer is an "interest-based" protocol, which means that the rewards allocated to each participating user are proportional to their contribution. Participants who actively participate in a round of interaction, whether by running nodes or staking tokens, can receive a certain percentage of rewards. People who are not actively participating in a given round will not be rewarded.

Coordinators also receive an additional benefit: they receive a portion of what the delegators pay as a commission for running the decentralized infrastructure remuneration.

With this system, active participants can increase their stake in the network. At the same time, if inactive users do not participate in a certain round of interaction, their transcoding rights will shrink round by round. In other words, the larger the LPT share, the more work will be allocated and the more rewards will be obtained in the end.

The inflation rate used to determine the amount of rewards can also motivate users. The percentage of new LPT in each round of compensation depends on the total number of LPT invested in the successful operation of the network. The higher the ratio, the lower the inflation rate and the more value existing tokens retain. Therefore, token holders will naturally be motivated to stake more to earn more rewards.

How to buy LPT on Binance?

You can buy LPT on cryptocurrency exchanges such as Binance.

1. Log in to your Binance account and enter [Trading] -> [Spot].

2. Enter "LPT" in the search bar to view available trading pairs. Let’s take LPT/BUSD as an example to illustrate.

3. Enter the [Spot] column and enter the amount of LPT you wish to buy. In this example we will use a market order. Click [Buy LPT] to confirm your order, and the purchased LPT will enter your spot wallet.

Summary

Livepeer has designed a solution to delegate video processing tasks to trusted people. With a decentralized video protocol, Web3 projects and companies can avoid high, well-named video processing fees and censorship, and provide viewers with better video content.