The VideoCoin Network, a decentralized ecosystem for the sharing of video material, has announced the debut of its fully-working product.
The project seeks to create a realistic decentralized alternative to leading video streaming platforms such as Netflix and Hulu, providing a blockchain-based alternative to established cloud providers such as AWS and Google Cloud.
The program is open-source, and it allows anyone to stream video through the VideoCoin network, which performs all the necessary functions of encoding, storing and distributing video content.
The platform is powered by its own token, VID. However, unlike similar projects, it doesn’t use the token for payments. Realizing that the volatility inherent to project utility tokens and cryptocurrencies in general, VideoCoin decided to accept payments through a third-party fiat payment processor, backed by a consortium of banks.
Both content publishers and network operators are paid in a tokenized fiat currency, which reduces the friction commonly found with proprietary tokens. Instead of being a payment currency, VID functions as a reputational token, powered by staking mechanisms. Workers are selected by VideoCoin Network’s algorithm to become operators and process video files according to several criteria: quoted price, number of staked tokens and performance.
Upon completion of verified work, the VideoCoin Network’s protocol distributes both fiat payments and additional VID tokens to the operators, which provides them with a direct payment and builds their reputation through additional tokens. This ensures that the best and most committed nodes become operators, while driving demand for the token.
Its supply is also limited, with the company burning two thirds of the supply for the launch.
VideoCoin previously launched a Blockchain VR Network, built specifically for the blockchain industry and featuring original programming from notable crypto content creators, including BlockTV.