One of the core proposals in the Streamflow paper is breaking down the traditional Transcoder role described in the Whitepaper into a new Orchestrator role, and Transcoder Pools. In the Streamflow proposal, rewards and fees are paid directly to the Orchestrator. One of the key issues is that the Orchestrators and Delegators stake tokens, and therefore could be slashed upon any malevolent behavior. If the Transcoder Pool maliciously encodes the wrong content, the protocol would not directly penalize the Transcoder but would slash the Orchestrators and Delegators.
The goal is to be able create a solution that will ensure that all participants have the necessary skin in the game to properly align incentives and equitably pay for their contributions to network. Here are a list of initial ideas outlined by Doug and the Livepeer team so far:
- Check the Work: Orchestrator can check all the work, and maybe the extra costs are recovered by the gains in efficiency by opening up your pool to the world.
- Use redundancies and randomization: Make multiple Transcoders compete to perform the work, compare their results to one another, and only check it if they disagree. Use some sort of randomness as to who is eligible to do the work to minimize the chance of collaborating Transcoder screwing you over.
- Secure the work via Transcoder Stake: Transcoders have to deposit some stake into a smart contract, that can be slashed if they provide an improperly encoded segment. This has the downside of Transcoders now needing to be crypto-aware rather than just dumb hardware.
- Use a quasi-trusted pool with governance: Run the pool as a DAO, where Transcoders have to buy in to do work. If the Orchestrators gets slashed, it hurts the funds that the DAO would otherwise control. Use governance to determine who can/can’t do work based upon a number of factors.
Please feel free to chime in with new ideas or thoughts around the costs/benefits of the proposed ideas outlined above.