Video content has become the absolute mainstay of the internet. Especially since the pandemic, the demand for short videos and live streaming has exploded, coupled with the booming creator economy. In 2021, video-related traffic already accounted for over 82% of internet bandwidth. Behind such massive traffic are substantial costs—traditional video encoding services are expensive, putting significant pressure on small creators and development teams.

Is there a cheaper, more flexible solution? Livepeer provides an answer: a decentralized video protocol built on Ethereum.

Its core logic is actually simple. From filming to user viewing, a key step is transcoding—the process of converting raw files into formats optimized for user devices, network speeds, and other factors. Traditional solutions require centralized servers, which are costly and prone to bottlenecks. Livepeer's approach is to delegate this work to a network of node operators, leveraging blockchain technology to coordinate the entire process.

How does it work? It relies on the LPT token. As the network's native asset, LPT acts as a coordinator among participants—through game theory design, cryptoeconomic incentives, and smart contracts, all stakeholders are motivated to honestly complete their tasks. Imagine hundreds or thousands of distributed nodes operating simultaneously, yet ensuring tasks are accurately assigned, quality is controllable, and costs are low—that's the magic of blockchain technology.

For video application developers and content creators, Livepeer offers a new path—achieving secure, high-quality, truly decentralized video encoding services at a fraction of the cost of traditional solutions. The larger the network and the more participating nodes, the further costs can decrease.