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Livepeer Mental Model
Livepeer is a crypto‑economic coordination protocol that secures a global, on-demand GPU network optimized for real‑time video and AI, and exposed through developer‑friendly platforms and applications. You can think of Livepeer as a decentralised serverless GPU fabric with a cryptoeconomic control plane, where services are exposed through a set of developer-friendly products and applications. Livepeer is akin to how you would access and build on traditional cloud providers, for example, social media is powered by on an underlying infrastructure, which you access through a set of products and applications (e.g. Twitter, Instagram, Facebook). Livepeer’s crypto-economic primitives and decentralised compute mesh provide additional benefits to the system such as censorship resistance, economic security, and trustless coordination.More on Crypto-Primitive Advantages
More on Crypto-Primitive Advantages
The decentralisation and cryptoeconomic primitives of Livepeer add additional benefits to the system including
- dynamic scaling & resilience (no single point of failure)
- global payment rails (accessible by AI agents)
- permissionless global participation & access (accelerates innovation and incentivises participation)
- fairer creator economics (gives creators transparent, guaranteed revenue streams)
- lower latency and data ownership (data stays local to the user)
- lower costs without lock‑in (no middlemen)
- incentives provide a runway to self‑sustaining, permissionless, global infrastructure without the need for venture capital (ramp to the tipping point)
- network effects (as more participants join, the network becomes more valuable to all participants)
- and more…
Infra Layers
ProtocolA crypto‑economic protocol that secures and coordinates the network. (incentives, staking, governance, payments)
Network
- the protocol provides trust, coordination and payment mechanisms
A global GPU network that performs the actual compute work. (supply, routing, performance)
Applications and Platforms
- the network supplies compute, routing, and verification
A set of developer‑facing tools and applications (APIs, SDKs, apps) which expose the network’s capabilities in a usable way.
- the platforms expose the network’s capabilities in a usable way.
Livepeer as an OSI-Like Stack
One of the traditional ways to map infrastructure architectures is with the OSI model. While this model doesn’t map perfectly to decentralised systems - and is also being rapidly transformed by AI, the framework is still useful for understanding the different layers and how they interact. Livepeer can be roughly pictured as an OSI stack where the “cloud control plane” is replaced by a cryptoeconomic protocol, and persistent storage is optional, external, and secondary to real-time streamed compute.Network & Protocol Stack
Think of this as the global decentralized open compute substrate.Layer 1: Physical Compute & Resource Layer
Layer 1: Physical Compute & Resource Layer
“Raw atoms”What it is:
- GPUs, CPUs, memory, bandwidth
- Heterogeneous hardware (consumer → data‑center grade)
- Power, latency, geographic placement
- Hardware is contributed and owned by independent operators
- Capacity is surfaced to the network via orchestrator infrastructure
- NVIDIA, AMD, bare metal, cloud VMs
- Orchestrators (GPU operators)
- Gateways (in some cases - depending on deployment)
Layer 2: Transport & Media Substrate
Layer 2: Transport & Media Substrate
“Bits move”What it is:
- Video transport, chunking, codecs, streaming primitives
- Frame-level + segment-level delivery
- Peer discovery, routing, and delivery paths
- Segment-based processing and delivery patterns
- Low-latency media delivery is a core competence (“video DNA”)
- Gateway-mediated delivery patterns (client/server hybrid)
- Gateways (as the primary network-facing media/API surface)
- Orchestrators (as the execution endpoints)
- Underlying Internet transport (TCP/UDP/HTTP/WebRTC etc.)
Layer 3: Distributed Execution Network
Layer 3: Distributed Execution Network
“Who Actually does the work?”What it is:
- Distributed job routing + load balancing
- Service discovery and selection
- Capacity-aware and performance-aware execution selection
- Orchestrator selection and routing mechanisms
- Segment/task model: work can be broken into independently computable units
- Execution endpoints expose pricing/fees and performance characteristics
- Orchestrators (provide execution + advertise capability)
- Gateways / clients (initiate and route work via protocol/network rules)
Layer 4: Crypto-Economic Coordination Layer
Layer 4: Crypto-Economic Coordination Layer
“Coordination, Trust, Provenance”What it is:
- On‑chain logic that secures and coordinates the network
- Cryptoeconomic primitives that align incentives
- Work/role coordination, reputation signals, and network rules enforcement
- On-chain protocol + off-chain coordination patterns that:
- allow permissionless participation
- coordinate stake-weighted influence and selection
- align behavior with network goals
- Ethereum smart contracts (on Arbitrum L2)
- Blockchain network (Arbitrum L2)
- Network participants (orchestrators, delegators, gateways) operating under protocol rules
Layer 5: Economic & Security Layer
Layer 5: Economic & Security Layer
“Why anyone behaves” (incentives alignment, game theory)What it is:
- Cryptoeconomic primitives that align incentives
- Game‑theoretic mechanisms that ensure correct behavior
- Incentives for participation and penalties for misbehavior
- LPT staking + delegation
- Inflation-based rewards (protocol issuance)
- Fee capture and distribution (usage-based)
- Slashing (where enabled) to penalize malicious/incorrect behavior
- Governance processes (LIPs, voting, treasury stewardship)
- Protocol participants:
- Delegators (stake delegation / security backing)
- Orchestrators (service provision under stake)
- Governance participants (proposal + voting + stewardship)
Layer 6: Data & State Layer
Layer 6: Data & State Layer
“What persists”What it is:
- The data plane around jobs: segments, manifests, logs, receipts
- Temporary + derived artifacts needed for execution and verification
- Livepeer is intentionally light on storage
- Video segments and state are often ephemeral and pipeline-driven
- Long-term storage is typically external (object stores, CDNs, decentralized storage)
- Video segments (temporary)
- Manifests, logs, receipts
- Verification metadata
- Broadcasters / application operators (sometimes own long-term storage)
- External storage providers (S3, GCS, IPFS, Arweave, etc.)
- Not the Livepeer chain
Platform and Application Stack
Layer 7: Platform Services
Layer 7: Platform Services
“Batteries included”What it is:
- Managed services that abstract protocol/network complexity and make it easy to build on Livepeer
- Operational tooling: dashboards, analytics, key management, billing abstraction
- Provides features such as stream management, analytics, key management, billing abstraction
- Hosted/managed gateway experiences
- Templates, pipelines, and reference apps
- Ecosystem-led products that package the network into a usable platform
- Livepeer ecosystem teams (Inc, Foundation-funded projects, community teams)
- Gateway operators offering service layers on top
- Livepeer Studio
- Streamplace
- Daydream
- and anyone who builds on top of the Livepeer protocol and network
Layer 8: Developer Interfaces
Layer 8: Developer Interfaces
“How builders integrate”What it is:
- APIs, SDKs, client libraries, docs, example repos
- Gateway APIs
- SDKs (JS, Python, etc.)
- BYOC-style integrations (containerized apps connecting to the stack)
- Product teams and open-source contributors
- Gateway implementations exposing consistent interfaces
Layer 9: Developer Applications
Layer 9: Developer Applications
“What builders ship”What it is:
- End-user applications and services built on top of Livepeer
- The final layer is where the end-user applications and services are built.
- This is where the magic happens and is what most users will interact with.
- Independent developers, studios, ecosystem teams
- Anyone who builds end-user applications on top of Livepeer or Livepeer Platform services
Layer 10: End User
Layer 10: End User
“Humans and (increasingly) AI Agents”What it is:
- Viewers, creators, AI consumers.
- Users typically never see
- orchestrators,
- staking/delegation,
- protocol mechanics.
- The applications and experiences (Layer 9)
End users never see orchestrators, stakes, or protocol mechanics.
Middleware & Integrations
Livepeer replaces persistent storage coupling with streamed, ephemeral compute coordination.
Not Kafka. Not Airflow. Not Kubernetes. But conceptually: A decentralized serverless GPU fabric with a cryptoeconomic control plane.