What Is Livepeer?

1. What Is Livepeer?

Livepeer is a decentralized video streaming network built on the Ethereum blockchain that enables developers to add live or on-demand video capabilities to their applications at a fraction of traditional costs. It uses blockchain and crypto-incentivized infrastructure to provide a scalable, cost-efficient, and censorship-resistant platform for video encoding (transcoding), which is typically one of the most expensive parts of streaming. Livepeer’s core value proposition lies in its ability to democratize video infrastructure, enabling any developer, creator, or platform to access professional-grade video services without relying on centralized cloud providers.

2. Why Livepeer Was Created

Video streaming is resource-intensive, especially the transcoding process that converts video files into formats suitable for different devices and internet speeds. Traditionally, this service is dominated by large centralized providers, which makes it expensive, less accessible, and prone to censorship or outages. Livepeer was created to solve this problem by decentralizing video infrastructure. It provides a peer-to-peer network where participants can share processing power to perform transcoding in exchange for crypto rewards. This significantly reduces costs, increases accessibility, and eliminates reliance on centralized infrastructure.

3. How Livepeer Works

1. Video Submission: A developer or application submits a video stream to the Livepeer network via its API or integrated tool.
2. Job Assignment: The network assigns the task of transcoding to a randomly selected orchestrator, a node that offers GPU resources.
3. Transcoding: The orchestrator delegates this task to transcoders, who perform the actual video conversion into multiple formats/resolutions.
4. Verification: To ensure the integrity of the output, Livepeer uses probabilistic and cryptographic verification mechanisms to check that transcoders did the job correctly.
5. Reward Distribution: Orchestrators and transcoders are rewarded in Livepeer’s native token, $LPT, for their services.
6. Streaming: The processed video is delivered back to the application, optimized for smooth playback on a range of devices.

4. Key Features of Livepeer

• Decentralized video infrastructure that eliminates reliance on centralized cloud providers
• Token-based incentive model for orchestrators and transcoders
• Highly scalable through distributed computing power
• Open-source and developer-friendly architecture
• Up to 10x cost savings compared to traditional video services
• Censorship-resistant content delivery model

5. Who Can Use Livepeer?

• Video app developers building live or on-demand platforms
• Independent content creators looking for affordable infrastructure
• Web3 projects integrating native video features into decentralized applications
• Businesses and enterprises needing scalable video solutions
• GPU owners or crypto miners who want to earn by contributing compute power

6. What Is the $LPT Token?

$LPT is the native utility token of the Livepeer network. It plays a central role in maintaining and securing the protocol. Token holders can delegate their tokens to orchestrators, who stake $LPT to earn the right to process video. The more $LPT staked, the more jobs an orchestrator is likely to receive.

• Staking: Token holders can stake $LPT to support orchestrators and earn rewards.
• Governance: Participate in network governance and protocol upgrades.
• Incentives: Orchestrators and transcoders earn $LPT and ETH for completing work.
• Bonding: Delegators bond $LPT to help orchestrators gain work and share rewards.
• Network Security: Staking ensures economic security and honest behavior.