What is Livepeer (LPT)

Livepeer is a decentralised video infrastructure protocol built on Ethereum that provides live video streaming transcoding services at dramatically lower cost than centralised cloud alternatives. Founded in 2017 by Doug Petkanics and Eric Tang, Livepeer uses a network of GPU-powered nodes to transcode video streams and distributes LPT (Livepeer Token) as economic incentive for network participants.

THE VIDEO TRANSCODING PROBLEM

Streaming a video requires transcoding, converting a video from one format or resolution into multiple formats for different devices and bandwidth conditions. A live stream must be transcoded into 360p, 480p, 720p, and 1080p simultaneously in real time. On centralised cloud infrastructure (AWS Elemental, Azure Media Services, Google Cloud Video), this transcoding is expensive, often the largest infrastructure cost for video streaming applications. Livepeer's network uses idle GPU capacity from distributed node operators to perform this transcoding at approximately 10x lower cost.

HOW LIVEPEER WORKS

Video applications (broadcasting platforms, social media, streaming services) integrate with Livepeer's gateway API. When a live stream begins, the gateway segments the video and distributes transcoding jobs to orchestrators node operators running GPU hardware who have staked LPT as collateral. Orchestrators process the transcoding jobs and return the transcoded video segments. Broadcasters pay in ETH per pixel processed. Orchestrators earn ETH fees plus LPT inflation rewards.

THE LPT TOKEN

LPT is the Livepeer network's work token:

Staking: Orchestrators must stake LPT to participate in the network; the stake determines their probability of receiving transcoding work.
Delegators: LPT holders who cannot run nodes can delegate their stake to orchestrators and earn a portion of fees and rewards proportionally.
Governance: LPT holders participate in Livepeer protocol governance decisions.
Inflation: Newly minted LPT rewards active participants, with participation rate determining inflation rate.

REAL-WORLD ADOPTION

Livepeer has been adopted by video applications, NFT platforms (for video NFT processing), and Web3 social media. The protocol processes millions of minutes of video per month, demonstrating real-world utility in the decentralised infrastructure space.

Terms in addition to the Livepeer (LPT)

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.