The VideoCoin Network, a decentralized video infrastructure platform redefining the process for creating, storing, and distributing digital video content, announced the refinement of its operating model today. To best serve the requirements of its media customers and its network of operators, the VideoCoin Network has created an efficient deployment of its decentralized network paired with fiat payments embraced by traditional businesses. The VideoCoin Network model is optimized to maximize the utility of the VideoCoin (VID) token in powering the network and to provide a reputational model to surface the most qualified network operators for serving customer needs. Equally critical to the business’ appeal to end customers, the VideoCoin Network will utilize a third-party payment processor underpinned by a consortium of banks to allow for service payment in fiat. In all, these implementation refinements serve to harmonize the efficiency promise of decentralized networks with the realities of how businesses operate and select their service partners. While the VideoCoin Network is doing this for digital video services, its model removes volatility and may transform how other blockchain-driven implementations seek to operate in real-world environments.
“Just as bitcoin has not yet proven practical for consumer use, volatile tokens have not proven practical for business use. Businesses don’t like volatility, which explains why we’re now seeing a shift toward stablecoins,” said Halsey Minor, CEO at Live Planet and Strategic Technology Partner to the VideoCoin Network. “No existing blockchain projects are using fiat currency such as U.S. dollars for payments—they just mint new tokens. This is a crucial misstep, as all businesses operate in fiat. With the VideoCoin Network operating model, we are introducing a new way to think about how blockchain-driven decentralized networks should work by removing the volatility in the current ecosystem.”
Ensuring high quality and consistency for media producers, ecosystem participants and network resource providers, the VideoCoin Network implements three key enhancements to its decentralized ecosystem:
Excessive token inflation is a significant problem for many blockchain projects. The VideoCoin Network addresses this issue by eliminating ongoing token generation—meaning no new minting of VID tokens. The existing tokens are utilized by the network services algorithmic engine to compute the relative quality of network operators to ensure the highest quality / lowest cost resources are surfaced for VideoCoin Network media customers. This adds stability and creates a natural demand engine for tokens correlated with network operation and worker activity.
The VideoCoin Network provides its media customers with a simple, common payment mechanism by enabling fiat payments via a third-party fiat payment processor. Content publishers pay in tokenized fiat and network operators get paid in tokenized fiat. As a result, the VideoCoin Network reduces friction between real world and cryptocurrency markets through a simplified payment process that encourages adoption of the Network’s services.
The VID token does not act as a payment mechanism but rather reinforces its utility as a reputational staking mechanism for building the global infrastructure that runs the worker nodes on the VideoCoin Network. Workers are continuously selected by the VideoCoin Network services algorithm as operators to process video files based on three factors: quoted price, number of staked tokens, and performance. This drives the least expensive and highest quality resources to be chosen to perform—the best rise to the top.
Upon completion of verified work, the VideoCoin Network’s protocol disburses to workers both fiat payments and additional VID tokens, which further build their reputation. In addition, workers have the option to participate in third-party staking services to enhance their reputational token stake. This competitive "reward based" token staking model generates value for platform participants and rewards for workers and participants alike.
Integrating these components creates real world value for all aspects of blockchain projects, and this practical approach may provide the roadmap for future successful projects more generally. For the VideoCoin Network specifically, this approach is creating a revolutionary blockchain infrastructure for next generation video services which tap global network compute power to deliver dramatic cost savings, reduce friction, encourage adoption, and spark innovation. By harnessing the power of the blockchain in the new "sharing economy" the VideoCoin Network is creating the future of decentralized network-driven video infrastructure.
The VideoCoin Network is presently implemented in alpha, with the beta network scheduled for deployment in July 2019. Relatedly, the VID token will be distributed to presale contributors and available on to-be-announced cryptocurrency exchanges on or before May 25, 2019 in order to be utilized on the Network for the initial offering of services, beginning with live streaming capabilities.
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About the VideoCoin Network:
The VideoCoin Network is a decentralized video infrastructure platform redefining the process for creating, storing, and distributing digital video content. It was developed by the VideoCoin Development Association Ltd. (Cayman Islands) to run on a new blockchain with a native protocol token, the VideoCoin (VID). Powered by a large-scale, distributed cloud video infrastructure, the VideoCoin Network will usher in "the new cloud," by marshaling underutilized computing resources from around the world to revolutionize video services with blockchain technology. The VideoCoin Network ecosystem will lower costs by deploying unused compute resources and peer-to-peer video distribution, enable a new generation of applications via open APIs and open source-based development, with increased privacy using decentralized, end-to-end encryption.