Introduction
With the Clarity Act getting closer to realization I’ve been pondering which protocols will benefit the most. Obviously the act has not passed and therefore, nothing is guaranteed or set in stone. However, based on the current language of the act, tokens with real utility, high levels of decentralization, and strong community will be categorized as digital commodities. Based on this language I believe Livepeer is safe. Livepeer’s utility is undeniable and may serve as a solution to the technology industry’s biggest problem. Resource intensive infrastructure.
The Problem
Centralized compute providers are relying on massive datacenters that require a ton of energy and cooling that only increase with demand. This creates negative sentiment around not only the data centers, but the deployments those data centers support, which right now leans heavily into AI and ML.
The Solution
Livepeer NaaP could potentially be the industry’s saving grace. While we don’t think about it every day, because of our immediate access to it, fresh water, energy, and land are all critical resources. As demand for compute continues to grow, so does the need for efficient ways to handle that demand.
Livepeer’s ability to provide compute for resource intensive use cases can help redistribute some of that demand across node operators that don’t necessarily rely on water intensive cooling infrastructure. If centralized providers continue to scale data centers aggressively, especially in drought stricken areas, governments may eventually step in to regulate resource usage, forcing providers to think differently about how cloud based software is deployed.
Decentralized networks like Livepeer offer a solution. Instead of concentrating compute in a few large facilities, workloads can be distributed across orchestrators using existing hardware that is far less reliant on our extremely valuable land, lakes, and rivers.
Conclusion
I am not saying decentralized compute or Livepeer replaces data centers, but acts as an environmentally friendly solution to handle growing demand through decentralized compute distribution. If Livepeer can capitalize on this specific issue, the protocol may help offset resource consumption. Potentially reducing the need for hundreds of millions to billions of gallons of water usage, and hundreds of acres of would-be datacenter land over time.
The Clarity Act favors real utility and decentralization. Livepeer is the definition of real utility and decentralization. With engineers working hard around the clock to increase the network’s accessibility, capabilities, and transparency, Livepeer is well positioned to solve or help alleviate the biggest problem our future generations will face.
GO LIVEPEER! 