Livepeer is a network built on Ethereum for transcoding live and on-demand video. The protocol aims to provide a cost-effective, secure, and reliable infrastructure that can meet today's high demand for video streaming. The network's native token is the Livepeer Token (LPT). In this article, we will learn about Livepeer and its cryptocurrency $LPT, including its features, future prospects, and more.
Livepeer (LPT coin) latest news
Since the birth of ChatGPT, artificial intelligence (AI) has become a hot topic, and AI-related concept stocks and cryptocurrency projects have become the focus of people's investment.
On February 16, OpenAI launched Sora, an AI model for converting text to video, which once again triggered a craze for AI tokens. Among them, Livepeer token LPT rose 150% from a low of $8 to $20.
About Livepeer Founded in 2017 by Doug Petkanics and Eric Tang, Livepeer (LPT) is a network built on Ethereum for instant transcoding and on-demand video.
Livepeer differentiates itself from traditional video streaming services like YouTube by not hosting, storing, or distributing videos. Instead, Livepeer is building technology that uses excess computing power to more efficiently share videos from broadcasters to consumers.
Video streaming is a major contributor to global internet bandwidth usage, with some reports suggesting it accounts for 80% of global internet usage. The biggest cost for video broadcasters is transcoding, which is the process of converting and reformatting the original video to ensure it can be played on multiple devices and networks, from pocket-sized smartphones to big screens.
Livepeer aims to disrupt the video transcoding market by giving broadcasters access to thousands of decentralized processors, allowing application developers to create videos in a secure, efficient, and affordable architecture.
At the core of its ecosystem is the Livepeer Token - LPT, which is used to secure the Livepeer network and coordinate the work responsibilities of those supporting the video encoding process.
How does Livepeer work? Livepeer relies on its "encoders," or people who add computers to the network to handle the transcoding needs of application developers as needed. These people trade their computing resources, including CPU and GPU power, as well as bandwidth, in exchange for fees paid in cryptocurrency. Livepeer calls these users "video miners," which is consistent with the mining terminology used for block creation work on many other blockchain platforms, such as Bitcoin.
Developers who use the Livepeer network to power their video applications must pay LPT fees for transcoding and distribution services. In addition, LPT holders can stake their tokens to encoders and become delegators, thereby earning less fees and rewards for participating in the network without directly participating in the transcoding process.
About Livepeer's consensus mechanism Livepeer uses a two-layer consensus mechanism. First, the Livepeer ledger and its transactions are recorded and protected on the Ethereum blockchain. The second consensus layer handles the distribution of newly generated LPTs and verifies that transcoding work is completed correctly. This layer utilizes a delegated proof-of-stake (DPoS) model, where business process coordinators act as validators to participate in the protocol to ensure correct payment settlement, token distribution, and security of nodes.
When one orchestrator performs transcoding work, broadcast nodes can verify themselves or outsource to other orchestrators to check for errors and malicious behavior. This is a costly operation, so Livepeer only randomly verifies a small portion of the work completed.
What is LPT coin? The native Livepeer token - LPT is a multi-utility ERC-20 token, and all token transactions are public and transparent on Etherscan. The LPT token is the key to the Livepeer network, creating a smooth operation that benefits all parties involved in the decentralized video distribution process.
LPT tokens are used to pay for broadcasting fees on the Livepeer network. In addition, LPT tokens are used to incentivize honest behavior of orchestrators and delegators. Network participants must already hold some LPT tokens. In addition, Livepeer provides LPT token holders with an opportunity to earn passive income by staking LPT tokens and protecting the Livepeer network.
Additionally, the network requires native LPT tokens to handle the transcoding and distribution of videos on the Livepeer network. The more LPT tokens a scheduler has, the more active they are in the Livepeer network, earning more network fees as rewards.
LPT Token Economic Model The Livepeer team did not conduct a token sale to distribute its LPT tokens. Instead, an initial amount of LPT, as well as a long-term development fund, was allocated to the community, founders, and early team members.
New LPT coins are minted in "rounds" and distributed to coordinators and delegators in proportion to the amount they staked. One round is equal to 5,760 Ethereum blocks. Every time a user plays a video on the network, a new round of LPT is generated. LPT is inflationary, and the number of new Livepeer tokens minted in each round is determined by the inflation rate set by the Livepeer protocol.
Livepeer's current inflation rate is 0.02375%. This means that for every video played on the network, 0.02375% of the total LPT supply is minted and distributed to nodes. The inflation rate is adjusted based on the amount of staked LPT in the total circulating supply.
As the network develops, the inflation rate will increase by 0.00005% each round until the total amount of LPT pledged reaches 50%. Once it reaches 50%, the inflation rate will be reduced by 0.00005%.
To receive LPT rewards from the network, you first need some LPT tokens to stake. All you need to do is buy Livepeer tokens and hold them in your crypto wallet. LPT is an ERC-20 token, so it can be stored in any Ethereum-compatible wallet, such as MetaMask or MyEtherWallet.
Livepeer Token Price Prediction Although Livepeer (LPT) is still in its early stages, it has a lot of promise, especially as it continues to work hard on development. Investor confidence in the token is evident from its price history, which peaked at nearly $100 during the recent cryptocurrency bull run. Although LPT has fallen to around $5 as the cryptocurrency market crashed in early 2022, the price of LPT may rise again as the platform develops and matures.
In the short term, the price of LPT will be affected by the overall cryptocurrency market. In the long term, the price of LPT will depend on the success of the Livepeer platform.
Many experts understand the benefits that Livepeer can bring to the video broadcasting industry and are particularly bullish on the token, predicting that its price will exceed $30 by 2025, an increase of more than 250% from its current price of $5 (August 9, 2023). DigitalCoinPrice, while also predicting a price increase, is relatively more conservative about Livepeer's growth, predicting that its price will be just over $20 by 2025.
Overall, Livepeer's decentralized network provides reliable and affordable video streaming and processing services that are easy for you to use. Among them, LPT is a key factor in unlocking the potential of the network and revolutionizing the video transcoding process. The Livepeer team's goal is not just video infrastructure, they intend to expand their services to a wider range of areas, which shows that the protocol has the potential to become a major player in the video broadcasting industry. The decentralized network based on Livepeer will bring changes that will sweep the video industry.
