What is Livepeer (LPT)?

Deep Dive

1. Purpose & Value Proposition

Livepeer aims to decentralize the video streaming and AI compute infrastructure. Launched in 2017, it was the first fully decentralized live video streaming network protocol (CoinMarketCap). The core value proposition is providing a more economically efficient and open alternative to centralized corporate cloud providers, potentially reducing costs for developers and broadcasters. The network has expanded its focus to include real-time AI video processing, positioning itself as "The People’s Compute" (Livepeer).

2. Technology & Architecture

The network operates on a layered architecture. Applications send video jobs to Gateway Nodes, which route them to Orchestrator Nodes. These Orchestrators use GPU clusters to perform the actual transcoding and AI processing work (Livepeer). A ticket-based micropayment system facilitates efficient, small-scale payments for completed jobs. This structure creates a decentralized marketplace where anyone with hardware can contribute compute resources and be compensated.

3. Tokenomics & Governance

The LPT token is central to network operations and security. Its primary utilities are staking for work and governance. Orchestrators must stake LPT to be eligible for jobs and earn fees, while delegators can stake to these nodes to passively share in the rewards (Livepeer). This staking mechanism secures the network. Furthermore, LPT holders vote on protocol upgrades and treasury fund allocation, directly influencing the project's roadmap and capital management.

Conclusion

Livepeer is fundamentally a decentralized infrastructure protocol that turns GPU compute into a commodity market for video and AI, secured and governed by its LPT token. How will its open model compete as demand for real-time AI video processing scales?