The VideoCoin Network is a decentralized system for distributing, encoding, and storing content. It takes existing cloud-based video services and turns them into an efficient algorithmic market. The entire thing runs on the new blockchain developed by the team and uses VideoCoin (VID), the native protocol token.
Why Is VideoCoin Necessary?
The team behind VideoCoin recognizes that 82 percent of internet traffic is videos, 11 percent is web and data, 4 percent is file sharing, and 3 percent is gaming. Since video accounts for such a large chunk of internet traffic, it should run seamlessly and efficiently. Despite this, there are numerous obstacles in the way that limit its potential and use.
VideoCoin specifically aims to overcome obstacles due to regulations, specifically the fact that the quality of service from video service providers can be impacted by deregulation and regulation moves. The project also aims to overcome issues related to privacy, namely that consumption and distribution transaction records are transparent to government entities and providers.
The team at VideoCoin finds the centralization of videos services to be problematic since there is just a single point of failure. The centralization also leads to limited flexible and features as vendors lock in users. Finally, the platform aims to counter the rising costs for media companies thanks to the transition from broadcast deliver to fast-growing IP-based options.
How Does VideoCoin Address These Concerns?
Via its ecosystem, VideoCoin addresses all of these concerns, improving the existing video service platforms in innovative ways. The team expects the costs to drop somewhere between 50 and 80 percent by taking advantage of previously unused compute resources. To further lower costs and improve efficiency, VideoCoin will get rid of the intermediate market oligarchs, instead allowing for peer-to-peer processing, storage, and distribution of videos.
Between end-to-end encryption and decentralization, VideoCoin will also enhance security over existing systems. It will even allow for new generations thanks to its open APIs and development based on open-source materials.
How Does VideoCoin Use the Blockchain?
Many of the advantages of VideoCoin over existing video service providers are due to its leverage of the blockchain, which it does in several ways. Both encoding and storage are done via the blockchain, as these tasks get submitted to the network along with parameters for encoder configuration. Miners compete against each other to win bids and deliver the storage space or compute power. Using the CDN configuration parameters, distribution and retrieval tasks get submitted to the network. Miners compete to win bids for retrieving videos from the storage miners and then distribute that video to end-consumers, as with a CDN.
What Consensus Mechanism Does VideoCoin Use?
VideoCoin requires incredibly quick transaction times since it was built to power the video streaming on the network. It relies on a useful proof-of-work algorithm to use GPUs and CPUs’ hardware-accelerated video functions. It also has a unique proof-of-stake model that powers the decentralized video infrastructure, which itself is complex.
Why Does the Ability to Develop Applications Matter?
As mentioned, developers will be able to create applications thanks to VideoCoin’s open-source nature and APIs. These applications can make it possible to reimagine some of the most popular video platforms as decentralized peer-to-peer applications. Examples would be YouTube and Hulu or Netflix contracts. In the first, a client could use VideoCoin’s storage, distribution, and encoding to create a decentralized variation of YouTube, letting creators earn VideoCoins from consumers.
What Is the VideoCoin Token, and How Do You Earn It?
The VideoCoin token is an important part of the ecosystem and is its native protocol token. Storage miners can earn VideoCoin tokens by storing videos, and they receive better rewards by pledging more storage. Distribution miners earn tokens by delivering videos, and the more bandwidth they offer, the better their rewards. Compute miners provide the CPU time used for transcoding, and as with other miners, they receive better rewards for more computing power. Finally, relay miners earn tokens by relaying storage on the third-party servers. The more bandwidth and storage they provide, the greater their rewards.
Videocoin has a stunning team behind the project lead by Halsey Minor :
Halsey Minor is an Internet visionary who has to date founded or co-founded technology companies that have created over $100 Billion in cumulative value, including: CNET, Uphold, Live Planet, Salesforce, Google Voice, OpenDNS and Vignette.
What Should You Know about the VideoCoin Token Sale and Token Distribution?
During the token sales, the set goals are a minimum of $10 million with a soft cap of $15 million and a hard cap of $50 million. The token price is set to $1 as of Feb. 15, 2018. During the presale, there were 105.83 million tokens sold with a lifetime supply of 881.94 million and a mining pool of 617.3 million.
Of the total 882 million tokens, 12 percent, or 106 million, were allocated for the presale. Seventy percent (or 617 million) are allocated to miners, 9.8 percent (or 68 million) to the company, 3 percent (or 26 million) to advisors, 2.2 percent (or 20 million) to marketing, and 1.5 percent (or 13 million) each to acquisitions and the foundation.
The supply of VideoCoin is under the control of an asymptotic function that halves the block rewards every four years. By year 10, about 93 percent of all mineable tokens will have been distributed. Because of this, the full lifetime supply (881.94 million tokens) will not be reached for several decades. Eventually, block rewards will be very scarce, only impacting the Verifier Pool, which will always remain incentivized via transaction and wattage fees.
What Does the VideoCoin Roadmap Look Like?
The VideoCoin token presale ended in May 2018, and the token distribution will take place six weeks after its end, in July. This is also when the presale token will be accepted on Inc Cloud and Live Planet. The alpha version of the VideoCoin Network will launch in January 2019, and the beta version will launch in July.
VideoCoin aims to enhance the way that users experience, store, and process videos. As a decentralized video platform, VideoCoin makes improvements over traditional video platforms by leveraging blockchain technology. The presale has already ended, and tokens will be distributed soon, with the product launch next year. VideoCoin does have a great deal of potential considering the solid team behind the project and the significant percentage of internet traffic that is dedicated to videos, undoubtedly making this a project to watch.