Bitcoin Introduced a new Idea to the world. The possibility to build a system for the community, monitored by the community. The Idea to share resources in order to maintain the performance of the system and protect that system from malicious behavior. Bitcoin Introduced to the world a new definition of freedom, and with this freedom comes the responsibility of everyone toward the community. In this post, I will talk about VideoCoin.
When I came across VideoCoin, I was amazed by the simplicity of the Idea. You feel like you could have easily come up with it. It seemed a logical step toward decentralization. An obvious application of the blockchain technology. Video constitutes a large part of internet traffic and the advancement of VR and AR only makes the project more valuable.
VideoCoin’s purpose is to create a decentralized platform for video on demand. Video streaming takes a big amount of computing resources to encode, store and deliver videos to consumers. The Idea behind VideoCoin is to incentivize people to share their computing and network resources to be used for encoding, storage, and delivery. That will lead to lower fees and higher performance.
How Does It Work?
The main components of the VideoCoin ecosystem are the miners, the content creators, and the end consumers. There are four categories of miners:
- Storage miners earn tokens to store videos. the more disk space they dedicate to the network the more they earn.
- Distribution miners earn tokens to dedicate their bandwidth for video delivery.
- Compute miners earn tokens to provide computing power for transcoding.
- Relay miners that earn tokens to connect storage miners with distribution miners.
The content creators pay the miners with VideoCoins to use their resources. The distribution miners deliver videos to end-consumers. Miners compete with each other when a task is provided to the network by the content creators.
With the rising number of mobile devices and the low cost of broadband connection, the demand for video content is increasing fast. Solutions to make the process from the video source to the consumer more efficient are highly required. The blockchain might be the right step to meet this growing demand.
The video is the most consumed data on the internet. The majority of people prefer watching a video to reading. I expect the demand for video to increase at a higher pace in the future. It’s definitely a project to keep an eye on.