Video is 80% of Internet traffic and consumed by 2.15 billion people every month. In 2017, $12.5 billion in revenue was generated from video streaming. VideoCoin plans to disrupt the video market by creating a decentralized video infrastructure network that will provide end-to-end cloud-video services. This includes video encoding, storage and a content delivery network (CDN) via a peer-to-peer (P2P) algorithmic market.
VideoCoin’s elevator pitch is “Airbnb meets the video ecosystem”.
New Blockchain Protocol for Video Streaming VideoCoin is building a new blockchain with a native protocol token (the VID) to operate its decentralized video network. Video processing requires super-fast transaction times, especially for streaming and on demand video. Bitcoin and Ethereum (ERC20) cannot handle video processing and streaming due to long transaction times, limited compute capacity, and proof of work that is not scalable. Consequently, VideoCoin is building its own new blockchain with super-fast transaction times and enhanced scalability to power video processing on its network.
Massive reduction of video streaming costs (60-80%).
VideoCoin estimates they can reduce current video streaming costs by up to 60-80%. VideoCoin achieves this cost saving by utilizing idle computing servers through its cloud-based blockchain platform to process, store and distribute video much more cheaply than its competitors (Amazon, Microsoft etc).
VideoCoin implements decentralized versions of the core components pertaining to the video infrastructure process, thereby creating a competitive environment for a new breed of video miners that’ll compete to earn rewards by providing computing power.
These video miners can run on data centre servers, household desktop computers or even mobile phones, creating a powerful network of computers which would otherwise go unutilized. VideoCoin incentivizes miners to use such unused resources and provide as much compute, storage and bandwidth available.
There are 3 main components of the VideoCoin network:
(i) Distributed Video Encoding;
(ii) Distributed Video Storage Network (which implements Sonata, a scalable, fault-tolerant, distributed storage); and
(iii) Content Distribution Network:
• End-To-End Video Infrastructure: VideoCoin’s focus on being a full stack video infrastructure protocol layer clearly differentiates it from competitors Filecoin and Storj that are focused only on storage.
• Limited Barriers to Entry: Anyone with a computer – and more importantly, servers and data centers – can load VideoCoin’s software and start encoding video since all modern computers have an equipped encoder.
Halsey Minor, a proven tech visionary who founded several successful companies with a cumulative value of over $100 billion (Salesforce, CNET Networks and Google Voice).
Devadutta Ghat, founder and Chief Architect of the Intel Video Transcode Service, the basis for Facebook’s video platform. He was also a Senior Product Manager previously at Cloudera after completing his MBA in Berkeley.
Prominent Advisors & Investors
Videcoin is backed Century Fox Film, Paramount Pictures and DIRECTV. Videcoin raised early-stage investments from Michael Novogratz of Galaxy Investment Partners, Alphabit, BaseTwo Capital, Arcadia Crypto and Binary Financial.
The development of VideoCoin’s infrastructure commenced 2 years ago, with over 200,000 lines of codes and 10,000 hours of videos processed. The video infrastructure layer, which does distributed encoding and distribution, is already in production, running on as many as 250 nodes at a time.
Token Symbol VID
Total Token Supply 882,000,000 VID
Tokens Offered for Token Sale 105,000,000 VID (12%)
Hard Cap USD $50million
ICO Price (USD) 1 VID = $1 USD
Currency Accepted ETH / BTC / USD
Main ICO Period Public ICO Cancelled
Whilst the hard cap looks relatively high compared to other ICOs at USD $50 million, the nature of VideCoin’s project of creating an end-to-end video infrastructure, as well as its huge potential in disrupting the video space warrants a sizeable valuation. A majority of tokens (70%) are allocated for mining.
• High-Profile ICO: VideoCoin cancelled its public ICO due to oversubscription from private investors. There is unmet demand from retail traders, which should push price upwards when trading starts.
• Massive Market Opportunity: Given video represents 80% of internet traffic, VideoCoin is well-positioned to compete in this oligopoly market with the likes of Google, Amazon and Microsoft. Even taking a small chunk out of this pie would mean billions of dollars of revenue.
• Solving a Real Need: Reducing video streaming costs by up to 80% or more would undoubtedly disrupt the video market. If realized, traditional video giants would likely slash prices to remain competitive.
• Natural Blockchain Use-Case: The commoditization of computational power – under the structure of a sharing economy – has the potential to make the system much more efficient by facilitating sharing of computer resources globally.
• Strong Team/Advisors/Investors: Highly experienced co-founders, advisors and investors makes this project a strong contender against competitors such as Amazon and Google.
• Lack of Marketing Spend: The ICO has not spent big on marketing and thus is not widely known.
• Rudimentary Roadmap & Token Metrics: A more detailed roadmap, token metrics and go-to market strategy are yet to be made public as of this moment.
VideoCoin is poised to be a full stack video infrastructure protocol layer solution that could match the likes of big players in the space, including Amazon and Google. Given the promise of significant cost advantages, speed and efficiency, many are looking towards VideoCoin favorably. Combined with an all-star team and powerful backing, VideoCoin looks set to be a promising investment.
Verdict: Excellent Long-Term Hold
To invest in VideoCoin please email Christopher at email@example.com with your details and desired investment size. Act fast, VideoCoin’s private sale ends Wednesday, 9 May 2018.