VideoCoin aims to create video infrastructure for the blockchain-enabled internet. Find out how the platform plans to become the future of online video distribution today in our review.
What is VideoCoin?
The goal is to solve some of the constraints of today’s centralized video infrastructure. This centralized infrastructure is struggling to scale with the internet’s growing needs for higher-quality, larger-size videos.
VideoCoin sees itself as “the Airbnb of video”. The key feature of the network is its distributed network of computers. You can devote computing resources – like processing power and storage space – to that network in exchange for VideoCoin tokens. This distributed network replicates the functions of a content distribution network (CDN) or a video host online. The end result is a scalable, worldwide, censorship-resistant, privacy-focused platform for better video sharing.
A token sale for VideoCoin tokens will take place sometime in 2018. The company has already received investments from notable names like Mike Novogratz, former Wall Street hedge fund manager and crypto evangelist, during the early funding round.
What Problems Does VideoCoin Seek to Solve?
VideoCoin’s whitepaper identifies several problems with today’s video infrastructure system:
- Centralization: Vendor lock-in limits flexibility on pricing and feature sets and introduces single point of failure risk. Centralization is preventing global video infrastructure from scaling upward.
- Rising Costs: The transition from broadcast to IP-based delivery has skyrocketed media company costs.
- Privacy: Distribution and consumption transaction records are transparent to providers and government entities, which leads to limited privacy for video viewers.
- Regulatory Problems: Today’s video infrastructure companies are subject to the latest regulation and deregulation moves, creating a state of flux for the industry and its participants.
- Censorship: Today’s video platforms can be censored. There’s a centralized authority in charge of these platforms, and that means the centralized authority can censor unwanted videos.
How Does VideoCoin Work?
How does VideoCoin plan to solve the issues above? The platform aims to introduce “the most significant disruption to today’s video industry” by deploying a decentralized video infrastructure platform.
That decentralized platform will offer decentralized video encoding, storage, and content distribution. It will rely on a distributed network of computers to provide hosting and processing services to the network. As a data center owner, you can devote computer resources to VideoCoin in exchange for VideoCoin tokens.
VideoCoin will also turn all cloud-based video services into an efficient algorithmic market.
Everything runs on a new blockchain with its own native protocol token.
The end result of this system is a significantly reduced cost of encoding, storing, and distributing internet video. VideoCoin aims to reduce costs by 50% to 80%.
Users can participate in the VideoCoin platform to earn VideoCoin tokens. Companies can earn tokens by placing their unused data center computing resources into a pool for mining, hosting, processing, or delivering video. The more storage or resources you devote to the VideoCoin network, the higher your reward will be.
This is how it would work with encoding and storage tasks, for example: encoding and storage tasks are submitted to the VideoCoin network along with encoder configuration parameters – like the bitrate, codec, and output containers format – along with an ask price. Miners compete with other miners to win the bid to provide computing power or storage space for that job.
Retrieval and distribution tasks, meanwhile, are submitted to the VideoCoin network along with CDN (content distribution network) configuration parameters – like geographical region and bandwidth. Miners compete with others to win bids to retrieve videos from storage miners, then distribute it to end customers like a traditional, centralized CDN would.
VideoCoin aims to take advantage of the 20 million internet servers that go unused every day. The VideoCoin whitepaper also cites a study showing that $30 billion of capital investment is wasted daily. By putting these resources to use, VideoCoin can create a more efficient video infrastructure system.
Some of the benefits of the VideoCoin network include:
- Reduce costs by 50% to 80% by deploying unused computing resources
- Avoid high-priced intermediaries and “market oligarchs” by providing peer-to-peer video distribution
- Increased privacy using decentralized, end-to-end encryption
- Enable the creation of a new generation of video infrastructure application via open APIs and open source-based development
Who’s Behind VideoCoin?
VideoCoin is led by Halsey Minor (CEO), an internet visionary who has founded or co-founded technology companies that have created over $100 billion in cumulative value. He founded, co-founded, or led projects like OpenDNS, Live Planet, CNET, Salesforce, Uphold, and Google Voice, for example.
Other key members of the team include Devadutta Ghat (CTO), who was the founder and Chief Architect of the Intel Video Transcode Service, the basis for Facebook’s video platform. Seth Shapiro is listed as the Head of Strategy for VideoCoin. Shapiro is a two-time Emmy Award winner who serves as the Director of the Television Academy and as a professor at USC.
VideoCoin has secured early investment from major industry players like Mike Novogratz, former hedge fund manager and cryptocurrency evangelist. Investment funds Alphabit and Distributed Network Advisors also invested in the company during VideoCoin’s initial funding round.
The VideoCoin VID ICO Token Sale
VideoCoin is holding a token sale sometime in 2018. However, dates and details for that token sale have not yet been announced.
VideoCoin VID ICO Conclusion
VideoCoin sees itself as “the Airbnb of video”. The platform will allow companies to utilize under-used data center resources, putting them towards processing and storage jobs on the VideoCoin network in exchange for VideoCoin tokens. This creates a distributed network of hosts that can provide services similar to a content distribution network or centralized video host – but with reduced costs and reduced censorship.
To learn more about the VideoCoin network and its upcoming token sale, visit online today at VideoCoin.io.