What is Livepeer?

(Source: LivepeerOrg)

Livepeer is a decentralized protocol designed for live audio and video streaming, aiming to provide high-quality audio and video processing services at the lowest cost. It allows anyone to capture video, stream it live, and enables network node participants to contribute their computing resources and bandwidth to handle transcoding and streaming tasks, earning corresponding rewards.

The launch of this protocol is not just a technological innovation, but a response to the current issues of high centralization, high costs, and insufficient scalability of Web2 live streaming platforms. Livepeer leverages three key features: blockchain, cryptocurrency incentives, and decentralized networks, to redefine the technology stack of live streaming.

Overview of Livepeer's Technology Stack and Features

Open Media Server (LPMS)

The Livepeer Media Server (LPMS) launched by Livepeer is an open-source media server implementation that supports mainstream formats such as RTMP, HLS, Mpeg-Dash, and codecs like H.264 and VP8, with plans to support more high-efficiency formats such as HEVC, VP9, and AV1.

Developers can build decentralized audio and video applications based on LPMS, with the Livepeer network automatically scaling through protocol-driven architecture, no longer limited by the bottlenecks of traditional centralized streaming servers.

Peer-to-peer streaming and transcoding incentives

When users send audio and video to the Livepeer network, the nodes are responsible for transcoding and sending. Transcoders gain transcoding rights by staking LPT and accepting delegations, and they charge ETH as fees from the broadcasters.

Decentralized economy and security mechanisms

Livepeer adopts a Delegated Proof of Stake (DPoS) system, allowing users to stake their LPT with trusted nodes, thereby participating in the protocol's operations and earning rewards. To prevent nodes from acting maliciously or performing invalid work, the protocol has built-in verification and penalty mechanisms (Slashing) to ensure that each piece of work is authentic and effective, further enhancing network security.

LPT Token Economics

Token Distribution

Livepeer adopts an initial token distribution model similar to other DPoS protocols, valuing broad community participation and recognition of early contributors:

• Community and Participants: Most of the initial LPT token allocation is given to active users, delegators, and transcoding nodes, promoting network stability in the early stages of the protocol.
• Development and Team: A portion of the tokens is reserved for the team and developers who contributed to the protocol before its inception, to incentivize long-term maintenance and development.
• Long-term issuance strategy: After the protocol is launched, LPT will be issued based on an algorithm for inflation. Each round of issued LPT will be distributed to participants according to their staking ratio. This design ensures that active participants are protected from inflation dilution, while idle tokens will depreciate over time.

This dynamic adjustment incentive model effectively promotes staking participation, maintains protocol security, and enhances work efficiency.

Token Use

Livepeer Token (LPT) is the core token of the Livepeer network and is not a medium of payment, but is used for the following purposes:

• Staking and Verification Incentives: Holders can stake LPT to act as transcoder or delegate others to perform the work and earn ETH and LPT rewards.
• Governance and Participation Rights: LPT stakers can participate in voting on protocol parameters and governance proposals.
• Incentive distribution mechanism: Through a continuous inflation issuance mechanism, active participants can obtain a share corresponding to the inflation, while non-participants will face dilution.

The inflation rate will automatically adjust based on the Participation Rate, with the goal of incentivizing over 50% of LPT to enter a staking state to maintain network health and stable operation.

Why choose Livepeer?

• Decentralization and Cost Advantages: Compared to traditional CDN or streaming services, Livepeer can significantly reduce costs, making it particularly suitable for small and medium-sized creators.
• Scalability: A node-driven peer-to-peer architecture that can flexibly expand based on the number of users.
• Transparency and Open Source Code: Open participation and transparent protocol design allow anyone to freely access and contribute.
• Web3 stack integration: Filling the gap of the live video layer in the existing Web3 stack, complementing other protocols such as IPFS, ENS, and DeFi.

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Summary

Livepeer is not about rebuilding a video platform, but rather creating a foundational media layer for the entire decentralized network. As the Web3 ecosystem continues to grow, the distribution of video content will no longer rely on closed, expensive platforms, but will instead be achieved through protocols like Livepeer, realizing a truly open, shared, and low-barrier media future.