What is Livepeer (LPT) and How Does It Work in 2024?

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Livepeer is a decentralized network that aims to streamline the process of live video broadcasting.

Powered by its LPT token, Livepeer makes it possible for anyone to participate in the hosting, transcoding and distribution of live streaming content in a secure, affordable and open manner.

Let’s take a deeper look at what Livepeer is and how its native LPT coin works.

What is the purpose of Livepeer (LPT)?

Livepeer LPT coin

Livepeer was created to provide a transparent and inclusive infrastructure for live video streaming.

With video content exploding in popularity, centralized services like YouTube and Twitch face challenges around censorship, scalability and costs. Livepeer’s founders wanted to build an alternative using blockchain technology.

The LPT coin serves several core purposes within the Livepeer network. It is used to coordinate and incentivize “orchestrators” who contribute hardware resources to transcode live streams into different formats.

LPT also rewards “broadcasters” who host live content. Governance over upgrades and changes to the Livepeer protocol is handled through LPT token staking as well.

How does Livepeer (LPT) work?

Livepeer utilizes a global network of nodes operated by orchestrators. When someone wants to broadcast live video, the stream is sent to multiple transcoder nodes simultaneously.

These orchestrators then convert the raw video into multiple formats/bitrates using GPU/CPU power.

The bounty for transcoding work is awarded to the highest bidding orchestrator in LPT. This gamifies the process and promotes quality/reliability. Broadcasters also earn LPT based on stream performance and viewership.

The network is designed to tokenize compute resources and provide them to end users through an open market.

All transactions and interactions on Livepeer occur via smart contracts, bringing transparency. New LPT is minted each day and split among active stakers/validators to incentivize long-term participation.

Want the latest news on Livepeer? EXEcrypto makes it easy to stay up to date fast.

Does Livepeer (LPT) have a future?

Livepeer LPT token future

Livepeer has scaling and commercial integration going for it. Major projects are integrating Livepeer’s capabilities, demonstrating real-world demand.

The total addressable market for online video is vast and growing rapidly as well. If Livepeer continues establishing useful partnerships, its prospects seem bright.

When Livepeer (LPT) launched?

Livepeer was founded in 2017 by developer Doug Petkanics as an Ethereum standard token called LPT. No ICO was held – initially tokens were either held by the founding team or distributed freely within the community.

The network launched in beta later that year and version 1.0 was released in November 2018, marking Livepeer’s official genesis block.

Since then it has passed several protocol upgrades and now supports HLS, DASH, and CMAF encoding with more formats in development.

Today the Livepeer network has processed over 150 million minutes of live streams thanks to thousands of worldwide validators. The future looks bright as it evolves to meet new opportunities in Web3 video.

Is Livepeer (LPT) crypto a scam?

Livepeer and its parent company are completely legitimate operations. They have established credibility through successful funding rounds, strong growth since 2017, and high profile partnerships with companies like Microsoft and AWS.

All code and documentation is open source, allowing full transparency into how the protocol functions. Livepeer developers engage openly with the community on forums like Reddit too.

The LPT token also holds value through its real utility within the network for processing video tasks, unlike scams which only seek to pump price during token sales. There is no indication Livepeer displays the typical traits of a scam crypto project.

Is it safe to invest in Livepeer (LPT)?

Like any investment, there are risks to understand with Livepeer. The cryptocurrency market remains highly volatile, and LPT value could fluctuate significantly in the short term.

Livepeer also faces competition from other decentralized and centralized streaming solutions.

However, if you do your own research and only invest what you can afford to lose, LPT presents a relatively safe bet compared to more speculative crypto assets.

The project solves real-world problems and has an experienced team committed to responsible development.

By staking your tokens with trusted validators too, you gain exposure to Livepeer’s potential upside while generating passive yield from network rewards in the meantime.

For a long term hold, LPT qualifies as one of the safer altcoin investments out there right now in our view.

Is Livepeer (LPT) worth it? LPT Price 2024

Livepeer LPT coin price 2024

Livepeer’s LPT token has seen impressive gains since its inception, appreciating over 400% against the dollar in just a few years. This success speaks to the strong demand for Livepeer’s services from both broadcasters and developers.

Moving forward, LPT price could continue climbing as global video traffic exponentially increases. Popular analytics firm CoinPriceForecast estimates LPT may reach $15 per coin by end of 2024.

Other bullish predictions have it hitting as high as $50 within the next 2 years. Of course, past performance does not guarantee future results.

But given Livepeer’s competitive advantages over legacy solutions and encouraging on-chain activity levels, holding LPT long term appears a savvy speculative investment. Continuous protocol innovations also bode well for its disruptive potential in online media.

Where to buy Livepeer (LPT)?

The best way to obtain LPT is usually through a major crypto exchange like:

Kraken – One of the longest-running exchanges, Kraken enables fiat purchases of LPT with USD, EUR, CAD and more.

Binance – The largest altcoin exchange by volume, Binance offers deep liquidity pairs for LPT against BTC and ETH.

Coinbase – Though smaller pairs, Coinbase’s easy onboarding makes it ideal for first-time buyers. LPT purchases with fiat are also accessible.

When signing up, be sure to follow exchange best practices like enabling two-factor authentication and avoiding sharing login details. Once verified, simply deposit funds and place market or limit orders to purchase the LPT of your choice.

How to sell Livepeer (LPT)?

Selling LPT works similarly to buying, but in reverse order:

  • Deposit your LPT holdings into your exchange wallet
  • Navigate to the LPT trading pair you wish to use (e.g. LPT/BTC)
  • Place a limit sell order for the amount at your requested price
  • Your LPT will be sold once a matching buyer is found
  • Withdraw funds from your exchange in the currency of your choice

Be aware of trading fees, which usually range between 0.10-0.25% per transaction. Also wait for any deposits to fully confirm before selling. This lowers risk compared to instant trades from an off-exchange wallet.

How to stake Livepeer (LPT)?

Livepeer LPT coin stake

To earn network rewards from validating video work, you can stake your LPT holdings with a third party pool. Popular options include:

  • Lido Stake – A non-custodial pool enabling access to Livepeer staking yields via an ERC-20 proxy token.
  • StakeFi – Automated portfolio management including delegation of LPT stakes to top-performing validators.
  • Rocket Pool – Decentralized staking solution where you can run your own validated node or delegate to others.

Staking yields currently sit around 8-10% APY, paid in LPT tokens. Delegating is safer than running a node yourself too. Either way, staking provides an easy way earn income from your coins while supporting network security.

How to mine Livepeer (LPT)?

Unlike proof-of-work coins, LPT cannot be mined through energy-intensive hashing. Instead, validators on Livepeer effectively “mine” new LPT tokens through validating video work. To do this requires:

  • Powerful GPU-equipped servers or rigs for intensive graphics processing
  • Staked LPT tokens worth thousands of dollars as an entry point
  • Technical skills to set up a validator node and maintain uptime
  • Ongoing costs for servers and bandwidth

Unless you have the resources, simpler options like staking or buying LPT will provide exposure to its potential. But validators do earn the most from supporting the network directly through video encoding work rewards.

Livepeer presents compelling opportunities for getting involved with online video’s decentralized future.

With LPT, users and developers can all play their part in this rapidly evolving streaming ecosystem. Just be sure to perform due diligence before taking the plunge into any cryptocurrency investment.

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