Livepeer overview

The Livepeer protocol

Livepeer operates as an open-source protocol that allows developers to integrate live video streaming capabilities into their applications. The protocol is designed to be flexible and robust, supporting a wide range of video streaming use cases, from social media platforms to enterprise-grade broadcasting services.

How Livepeer works

Livepeer utilizes a decentralized network of nodes, known as "transcoders," to process and distribute video streams. Transcoding is the process of converting video content from one format to another, which is essential for ensuring compatibility across different devices and network conditions. By distributing this task across a network of participants, Livepeer can offer video streaming services at a lower cost compared to centralized platforms.

The Livepeer protocol incentivizes node operators to participate in the network by rewarding them with Livepeer Token (LPT), the native cryptocurrency of the platform. This token is used to pay for video transcoding and to ensure the security and reliability of the network through a process known as "staking."

Use cases of Livepeer

Livepeer is designed to support a wide range of applications that require live video streaming. Some potential use cases include:

• Social media platforms: Developers can integrate Livepeer to enable live video streaming features, allowing users to broadcast and share live events with their followers.

• Video conferencing: Livepeer can be used to power video conferencing solutions, providing a scalable and cost-effective alternative to traditional services.

• Live events and broadcasting: Broadcasters can use Livepeer to stream live events, such as sports matches or concerts, to global audiences without the need for expensive infrastructure.

The Livepeer ecosystem

The Livepeer ecosystem is composed of several key participants, each playing a crucial role in the functioning of the network.

Transcoding nodes

Transcoding nodes are responsible for processing video streams and converting them into different formats. These nodes are operated by individuals or organizations who contribute their computing resources to the network. In return for their services, transcoding nodes earn LPT rewards, which are distributed based on their performance and contribution to the network.

Delegators

Delegators are Livepeer participants who do not operate transcoding nodes but wish to participate in the network. They can delegate their LPT tokens to trusted transcoding nodes, helping to secure the network and earn a share of the rewards. This process allows for a broader range of participants to engage with the Livepeer ecosystem without the need for technical expertise or infrastructure.

Developers

Developers are the primary users of the Livepeer protocol, integrating its video streaming capabilities into their applications. By leveraging Livepeer's decentralized infrastructure, developers can offer cost-effective and scalable video streaming services without the need for extensive technical resources.

The Livepeer token (LPT)

Livepeer Token (LPT) is the native cryptocurrency of the Livepeer network. It plays a central role in incentivizing and securing the network, facilitating transactions, and enabling governance.

Token utility

LPT is used primarily for two purposes within the Livepeer ecosystem:

• Incentives and rewards: LPT is distributed to transcoding nodes and delegators as a reward for their contributions to the network. This incentivizes participants to provide reliable and efficient video streaming services.

• Staking and governance: LPT holders can stake their tokens to participate in network governance, helping to make decisions about protocol upgrades and changes. Staking also helps secure the network by aligning the interests of participants with the overall success of the Livepeer ecosystem.

Token distribution

The total supply of LPT is fixed, and the distribution is designed to incentivize early adopters and contributors to the network. A portion of the tokens is allocated to the Livepeer team, advisors, and investors, while the majority is reserved for network participants who contribute to its operation and growth.