The popularity of videos has increased tremendously in recent years. Today, for example, we make extensive use of platforms such as Twitch and YouTube, where we spend hours watching videos and streams. These are platforms that you would never have heard of 20 years ago, while now they are indispensable! But what will the world of video and streaming look like in the future?
The current internet is also called web2.0 and we are heading towards web3.0. This development also includes new projects, such as crypto developers building dApps on blockchain technology. One of these projects is Livepeer. A crypto project that focuses on streaming in web3.0, so a very future-oriented project!
Since its inception in 2017, Livepeer has processed more than 150 million minutes of video with the Livepeer network. Livepeer strives for a safe and affordable video experience in the world of web3.0. Together with thousands of nodes and many ambitious video app developers, this project builds a very interesting project. In this article you can find out exactly what Livepeer does! We will go through the whole project with you and also look next to the token of Livepeer, called LPT.
Take a quick look
In the video below you can find a simple explanation about Livepeer and $LPT!
What is Live Peer?
In 2017, the founders of the Livepeer project created a company called Livepeer, Inc. to facilitate early development, start up the supply and demand side of the network and guide the project’s path to decentralization.
Through the power of open source software, the use of underutilized resources such as computing and bandwidth, and the use of crypto-economic incentives for bootstrapping and participation, there is an opportunity to provide an infrastructure that can power video streaming applications in a highly cost-effective manner and at a price. infinite scale.
Coupled with the proliferation of high-quality cameras and ubiquitous bandwidth, it is believed that this will enable video applications never before possible under traditional, centralized cost structures, unlocking communication, economic opportunity and entertainment for society.
How does Live Peer work?
Livepeer, built on Ethereum, is essentially a network that connects anyone looking for video editing with vendors who provide this service. It uses its native token, LPT, to incentivize network participants to keep this video transcoding process reliable, secure, and affordable compared to current centralized solutions.
There are two main stakeholders in the Livepeer network: orchestrators and delegators.
Anyone who owns video mining equipment can deploy their LPT and perform video editing on the Livepeer network. In return for providing this service, they receive a portion of the video processing fee in the form of LPT and ETH. These network participants are called orchestrators.
Those without access to video mining tools or video processing experience can still join the network by delegating or assigning their LPT to a node operator with the appropriate tools and expertise to process video via Livepeer Explorer. These network participants are called delegators.
Livepeer’s token: LPT
The network’s own asset, the Livepeer token (LPT), is an ERC-20 token used to provide security, distribute video processing tasks among network participants, and encourage their active participation in the various roles of the Livepeer network. The more LPT tokens are used for the operation of the network, the more stable, secure and robust it becomes.
Orchestrators are assigned work based on the amount of LPT they have deployed—their own or delegated—along with their geographic location and reliability. Since more delegated tokens mean more work, and more work brings more rewards, orchestrators compete to attract as many delegates as possible.
At the end of each round, i.e. at the end of each day, the Livepeer protocol stores new Livepeer tokens according to a certain inflation rate. Livepeer is a “stake-based” protocol, meaning that rewards are distributed to each participating user in proportion to their contributions. Participants who have been active in a given round – either by running nodes or betting tokens – will receive a proportional share of the reward spent. Those who have not actively participated in a particular round will not receive these rewards.
Orchestrators also earn an additional benefit: they receive a portion of their participants’ rewards as a commission for running the decentralized infrastructure.
This system allows active participants to increase their stake in the network. Meanwhile, inactive users’ recoding rights dwindle for each round they don’t participate in. In other words, greater LPT engagement results in more assigned work, which ultimately leads to more rewards.
The inflation rate used to determine the amount of rewards used also motivates users to be active. The percentage of new LPTs in each compensation round is determined by how many total LPTs are deployed for the network to function. The higher this percentage, the lower the inflation rate and the more value existing tokens retain. So token holders are naturally motivated to stake more to earn more.
Where can I buy LPT?
When you want to invest in the Livepeer project, it is of course useful to know where you can buy the LPT token. Investors are lucky because the token is available on a large number of exchanges! Both well-known and relatively unknown stock exchanges, which come from the Netherlands or from various places abroad, have LPT in their range.
The most well-known exchanges with the LPT token in their range are Binance, Coinbase and Bitvavo. These are 4 of the more than 40 crypto platforms where you can come across LPT. In addition, it is not excluded that other exchanges will also place the crypto coin in their assortment in the future. Among the other crypto platforms, there are also a lot of well-known exchanges, which you can find in the list below:
- Bitcoin champion
- Huobi Global
Suitable wallet for LPT
Most people leave their crypto on an exchange. This is obviously the easiest way to store your coins because you don’t have to deal with difficult transactions and wallets. But leaving your crypto on an exchange also carries the necessary risks. After all, you don’t have a private key in your hands, so the coins aren’t really yours. If an exchange goes bankrupt, it can be difficult to get your coins back.
Therefore, it is useful to use a reliable crypto wallet. Because LPT is an ERC20 token, there are many crypto wallets that are suitable for LPT. As a result, various software and hardware wallets are available for the token. The most secure choice is a hardware wallet because it allows you to store your crypto coins offline. As a result, hackers and other scammers can’t just steal your crypto.
But which wallet should I go for? If you still like to use a software wallet then Metamask is the most useful and reliable wallet which is also known as the most popular wallet for Ethereum tokens. In addition, there are also various hardware wallets where you can store ERC20 tokens as LPT. The most popular and reliable option among hardware wallets is Ledger. This company has several models, such as Ledger Nano S and Ledger Nano N, which are used by millions of crypto investors.
Live peer on social media
Want to stay informed about the Livepeer project? If this applies to you, then you are in luck! The project can be followed via various social media channels. Like most crypto projects, the Livepeer team uses the well-known social media platforms where millions of people are active every day. The practicality of this is that you can continue to follow Livepeer via your favorite platform!
For example, do you like informative blogs? You can discover the latest news about Livepeer through their Medium account. Together with the more than 1,100 other followers, you can choose to continue following the project in this way and discover the most comprehensive information about the state of affairs.
In addition, the team also uses Twitter. More than 35,000 followers are reached through these social media platforms. As with most crypto projects, this is the social media platform where the most followers are reached. Via Telegram, for example, only 5,000 followers are actively following the project. Twitter is much more accessible and used relatively more for crypto research, making this distribution of followers more common.
Telegram is not the only chat app where you can continue to follow Livepeer. Discord is also used as a way to inform followers about the latest news about Livepeer. Twice as many followers are reached via Discord. From chat groups to long article platforms; You can follow Livepeer the way that suits you!
Web3.0 is seen as the future and therefore Livepeer is a very interesting project. The team reacts to web3.0 and therefore operates with a vision for the future. In an increasingly digital world, streaming is also an important part. It can therefore be very interesting to keep following the project. If Livepeer keeps building and adoption increases, this could be a great project!
But we can only say in hindsight whether it turns out to be a good investment. In recent years, the price of LPT, like the entire market, has experienced huge highs and lows. Therefore, always do your own research into crypto projects and price action so that you can discover for yourself what the crypto gems are on the market.
Looking for more information or have questions about Livepeer or web3? Or would you like to meet other crypto enthusiasts? In our product’s free Discord channels Money Mastery from AllesOverCrypto you can ask questions and meet thousands of other crypto enthusiasts. Have other crypto-related questions? The easiest way is to look up your question in our FAQ. Another thing you can do is google your question + All about crypto. Let us know what you think about the future of web3 and Livepeer’s role in this!