Livepeer Completes the ‘Merkle Mining’ Process, Frees Up Ethereum Bandwidth
Livepeer, a videos transcoding service built on the Ethereum network, just finished the ‘Merkle Mining’ Process, freeing up Ethereum bandwidth. However, the LPT distribution seemed to have no much effect when it comes to creating a gas bidding war, considering Ethereum transaction prices remained reasonable.
Through its official twitter feed, the company announced its token distribution results as follows:
Delegated Proof-of-Stake’ Model of Participation
The Livepeer network utilizes a model of participation where a group of transcoders comprising of 15 individuals provide video services, receiving LPT rewards in return. It’s therefore safe to say that it has a form of “delegated proof-of-stake.’ The company’s blog post states that:
“Participants who hold LPT tokens passively and do not bond to transcoders are being economically incentivized to do so or incur dilution. Furthermore, from the perspective of dilution, participants who can maximize their liquid LPT holdings may be able to build up stakes in the network comparable to those of early investors, who are vesting and delegating LPT slowly over time.”
The LPT token isn’t traded on exchanges, and is solely used as a utility token within the Livepeer ecosystem.
Congestion on the Ethereum Network
Congestion on the Ethereum network has been a serious challenge, casting doubt it at all the network has the capability to accommodate numerous distributed apps. As of now, many dApps don’t create an increase in the gas prices because of low grade-usage.
Notably, it has also been hard to synch the entire Ethereum blockchain, which currently is larger than 1 terabyte. Moreover, the hashrate of Ethereum is on a downward trend, almost reaching a three-month low, which makes Ethereum economics less appealing.
A tech enthusiast, CoinHoarder, decided to run a test on the Ethereum network to determine if the network has the ability to carry many distributed apps. From his findings, he stated that:
“I’ve heard rumors that getting the #Ethereum blockchain to sync is challenging, so I decided to run an experiment to see for myself. After running all night, it appears I have only been able to download 11.5Gb of the 1Tb+ blockchain. My node last received a block 11 hours ago…”