Livepeer (LPT) is a protocol for live video streaming that was launched in 2017. It aims to provide an alternative to centralized broadcasting solutions for both new and existing broadcaster companies. The platform enables producers to submit their work, which is then reformatted and distributed to users and streaming platforms. Livepeer is an open-source protocol, allowing developers to contribute to the underlying code. The platform is built on the Ethereum blockchain and uses a modified version of a delegated proof-of-stake (DPoS) consensus mechanism. The Livepeer token (LPT) is the protocol token of the Livepeer network.

Livepeer operates by enabling producers to submit their work on the platform, which then takes care of reformatting and distributing the content to users and streaming platforms. The platform utilizes a modified version of a delegated proof-of-stake (DPoS) consensus mechanism, which means there is no mining involved. Instead, the validation of new blocks on the blockchain is based on the number of coins staked. This system is more ecologically conscious and easily scalable compared to proof-of-work mechanisms. Livepeer also benefits from the extensive DApp universe established by the Ethereum blockchain, which further enhances the usability of the network.

Livepeer aims to bring changes to the broadcasting industry by leveraging blockchain technology. The platform offers opportunities for pay-as-you-go content consumption, auto-scaling social video services, uncensorable live journalism, and video-enabled DApps. It aims to transform the live video streaming process by allowing users to benefit from decentralized computing power and crypto-economic rewards for participation. The platform's open-source nature allows users and developers to contribute to the management and improvement of the platform.

Livepeer was founded by Doug Petkanics and Eric Tang. Petkanics graduated with a degree in computer science from the University of Pennsylvania in 2006 and has been part of several big names like Groupon and Wildcard. Tang graduated with a degree in electrical and computer engineering from Carnegie Mellon University. The duo has worked together on several projects, including Hyperpublic and Wildcard, before founding Livepeer. The platform was launched in 2017 with the aim of potentially introducing decentralization to the rapidly growing live video streaming and broadcasting industry.

Livepeer functions as a scalable Platform-as-a-Service (PaaS) for startups and organizations looking to integrate live or on-demand video into their project. Livepeer's primary function is video transcoding, which involves reformatting a video to suit various bandwidths and devices. This process is crucial for ensuring optimal video streaming experiences across different network conditions and viewing devices. Livepeer operates through a network of nodes, known as Broadcasters and Orchestrators, that send and receive video streams for transcoding. Orchestrators contribute their computer's CPU, GPU, and bandwidth to the network and receive non-monetary rewards denominated in ether (ETH). The network's native token, the Livepeer Token (LPT), is used as a bonding mechanism to incentivize Orchestrators to act honestly, thus maintaining the network's functionality. By decentralizing the video streaming and transcoding process, Livepeer seeks to reduce costs, increase reliability, and offer a more scalable infrastructure solution for the high demand for video streaming. This decentralized approach also presents an alternative to traditional, costly, and centralized video streaming infrastructure, which could lead to different business models that don't rely on selling user data or serving ads.

Livepeer's token, known as LPT, plays a crucial role in the Livepeer network. LPT is used to incentivize and coordinate participants in the network, ensuring the efficient and secure transcoding and distribution of video content. Participants, known as Orchestrators, stake LPT tokens to receive the opportunity to perform video processing tasks on the network. The more LPT they stake, the more work they can perform, and the more non-financial incentives they can receive for their participation. LPT token holders who don't have the technical expertise to be Orchestrators can delegate their tokens to Orchestrators they trust, helping to secure the network and receiving non-monetary rewards for their contribution. As the network's usage grows, so does the demand for Orchestrators and thus LPT.

Livepeer's protocol decentralizes video transcoding services by distributing the transcoding work throughout its network. This is achieved through a system of nodes, known as Broadcasters, which send video streams to the network for transcoding. These streams are then received by Orchestrators, users who contribute their computer's CPU, GPU, and bandwidth to the network in exchange for non-monetary incentives denominated in ether (ETH) charged to Broadcasters. Orchestrators serve as coordinators, ensuring that video is correctly transcoded. They send the video to Transcoder hardware that encodes and reformats the video before sending it back to Orchestrators. Work is allocated to Orchestrators based on the amount of Livepeer Token (LPT) they have committed to the network.

Livepeer is designed for potential integration with a variety of applications and platforms that require video streaming capabilities. These could include platforms for online radio stations, live streaming, and web3 video streaming. Livepeer can also be considered for integration with developer tools for building video applications, services for Livepeer delegators, and platforms considering the listing of Livepeer Token (LPT). The intention behind such integrations is to explore the potential of an alternative, scalable video infrastructure.

In the Livepeer network, node operators and delegators are incentivized through the Livepeer Token (LPT). Node operators, also known as Orchestrators, contribute their computer's resources to transcode and distribute video. In return, they receive non-monetary rewards in the form of digital assets like ETH or a stablecoin pegged to the US dollar like DAI. However, to receive the right to perform this work, they must first earn or acquire LPT. The more LPT they own, the more work they can perform on the network in exchange for non-financial incentives. On the other hand, delegators, who are LPT holders, participate in the network by staking their tokens towards Orchestrators they believe are doing good and honest work. In return, they receive non-financial incentives from the network's operations. New LPT tokens are minted over time, similar to Bitcoin and Ethereum block rewards, which are split amongst Delegators and Orchestrators in proportion to their total stake relative to others in the network.

Livepeer addresses the scalability challenges of video processing by utilizing distributed computing. It operates on a decentralized network, which allows it to distribute video transcoding operations across a broad network of participants. This suggests that Livepeer has the capacity to manage large volumes of video encoding tasks simultaneously, presenting itself as a potential option for content creators and platforms with high-demand video processing needs. Livepeer's decentralized approach allows for horizontal scaling, and the network has the potential to manage increasing volumes of video transcoding tasks.

Content creators can utilize Livepeer's infrastructure by broadcasting their streams to the network. These streams are then converted into a wide range of formats and dimensions, making the video available on various networks and devices. This process is facilitated by a decentralized group of individuals known as "node operators" who provide computing capacity and bandwidth to the network. Node operators receive non-monetary incentives through a token-based system. Livepeer seeks to provide access to video infrastructure, with the intention of fostering an ecosystem that is equitable and resistant to censorship for video content creators.

The network is composed of two main participants: Orchestrators and Delegators. Orchestrators are node operators who provide transcoding services to the network. They run Livepeer software to perform video transcoding and distribute video segments across the network. Orchestrators strive to perform the transcoding work and receive non-monetary incentives for their services. They participate in the network’s consensus by staking their own native cryptocurrency and can receive additional non-financial incentives for being selected to validate transactions and create new blocks on the Livepeer blockchain. Delegators, on the other hand, are individuals or entities that stake their native cryptocurrency in order to participate in the network’s consensus and receive non-financial incentives. They delegate their native cryptocurrency to a node operator who runs the Livepeer software and performs transcoding work on the network. In return for their delegation, delegators receive a share of the node operator’s non-financial incentives. The Livepeer protocol uses its native cryptocurrency as a means of compensation and incentivization for transcoders. Streamers compensate transcoders in its native cryptocurrency for their services, and transcoders receive non-financial incentives for contributing computational resources to the network.

The platform operates on a distributed network of nodes that collaborate to process transactions securely and uphold network integrity. This distributed network is designed to make it difficult for hackers to identify specific points of failure or exploit system vulnerabilities. Livepeer also employs its native token, LPT, as collateral to ensure that transcoders fulfill their responsibilities correctly. This system fosters a self-sustaining ecosystem where participants are encouraged to deliver high-quality services in exchange for non-monetary incentives. Livepeer's on-chain governance models aim to provide users worldwide with a transparent decision-making process regarding network improvements, achieved through consensus among stakeholders.