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About Livepeer (LPT)
Livepeer is an open-source infrastructure platform for decentralized video streaming that operates on the Ethereum blockchain. For developers in need of a way to broadcast live/on-demand video across their application, Livepeer is a ready-made solution. It’s not a decentralized YouTube or Twitch, but rather the underlying plumbing that ultimately helps deliver video content to the end user, Decrypt explained.
Powered by a decentralized network of token-holding node operators, Livepeer supports both traditional and Web3-based video streaming at costs up to 50 times less than competing cloud service providers.
Within the Livepeer ecosystem, ownership of a native digital asset, LPT, is required to perform work like transcoding and distributing video. The more LPT one holds, the more work they can do on the network. LPT is also used to facilitate governance across the protocol and is the means through which Liveepeer distributes tokenized rewards.
The protocol relies on a series of “orchestrators” to provide the decentralized bandwidth needed to provide video transcoding – a process that entails decoding, reformatting, and recoding files, as well as distribution services on the network.
Orchestrators are rewarded for their work with crypto or fiat-backed stablecoins, project documentation explained. Under this framework, delegators can stake their tokens towards high-performing orchestrators for a cut of their rewards.
Liverpeer garnered much attention across crypto spheres in March of 2021 following the release of Grayscale’s LPT trust.
How is the price of LPT determined?
LPT is an inflationary asset. New tokens are released at a rate of 0.02495%, according to series of rounds that occur every 5760 Ethereum blocks. At this pace, roughly one round of distribution is made each day. As of early June 2022, there were 25.6 million LPT in circulation.
Why does LPT have value?
Livepeer’s ability to provide video streaming services in a decentralized format at less cost than existing cloud-based competitors underscores its value proposition. Given LPT’s role within the Livepeer ecosystem, the desire for the token could swell as demand for the network’s services grows.
What are the main benefits of LPT?
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