ELI5: What is Livepeer?
TL;DR: iLs a protocol for decentralized video transcoding. Livepeer provides an open and cost-efficient video transcoding solution to video streaming applications.
What problem is Livepeer solving?
Video transcoding today is expensive and concentrated among a handful of service providers. Video streaming applications need more cost-efficient ways to transcode their video. Livepeer fixes this.
How does Livepeer offer cheaper and more open video transcoding?
Livepeer replaces traditional media servers and CDNs with an open-source decentralized network. Network participants globally rent their idle GPUs to perform transcoding work in exchange for fees.
Why is the timing right for Livepeer’s solution?
Video represents currently 80% of all Internet traffic with an expected CAGR of 26%.
The need for cost-efficient video transcoding increases along with the growth of the video streaming market.
Who are Livepeer’s competitors?
- Proprietary providers (B2B), such as Amazon.
- Social broadcasting (B2C) platforms, such as YouTube.
- Livepeer’s pros: cheaper than B2B & more open than B2C platforms.
What are the initial use cases for Livepeer?
Cheap video transcoding for video streaming apps. As Livepeer makes transcoding more accessible, we can expect video apps to innovate with new monetization models for streamers/streams.
What’s the business model?
Transcoders perform the work against a fee (paid in Dai or some other cryptocurrency). Transcoders need to stake LPT in order to perform work. Investors can delegate LPT to workers against a cut of the fees.
Who are the project’s backers?
Livepeer is backed by many prominent VCs including: Northzone, Collaborative Fund, Compound, Libertus Capital, DCG, Notation Capital, Coinfund, and Multicoin Capital.
How is Livepeer governed?
Livepeer is currently administered by its core dev team. The team recently released a roadmap proposal for progressively decentralizing the protocol’s governance.
Having global transcoder participation is an asset for Livepeer.
Having transcoders spread around the globe will enable local GPUs to perform the work, instead of remotely located centralized server warehouses.
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