1. Why does transcoding need the blockchain :
Simple Transcoding task can be done on the personal computers and laptops, but large-scale production like what Netflix and Youtube process a day will need hundreds to thousands of server which requires huge money and a lot of time maintaining those servers. Like Uber, Transcodium will work with anyone willing to rent their device to process these files, for maximum privacy and security, a media file such as video and images will be split into very little chunks and distributed to workers (minners), this means no single machine will get a full file access but rather a very little portion of it.
The blockchain is required here because there must be a trust between the customers and the worker machines, therefore, with the use of smart contract which is currently supported by the blockchain, the incentive to be paid after processing a file will be locked until the master nodes check the integrity of the converted files. Also minners will need a reserved tokens which will be held by the smart contract to issue automatic refunds to failed conversion which somehow the integrity check passed.
incentives to be paid the device owners (workers) will be based on the blockchain’s token, which we adopted ethereum blockchain.
secondly, for transparency, the public distributed ledger of the blockchain will hold all the necessary information of the processed file chunks, how much was paid to workers and many more information which both the worker machine owners and customers can verify.
2. How will the Tokens / Coins be used (token usage)
The TNS tokens will be used on the Transcodium Network, Those customers who want their files to be processed will pay using the TNS tokens, also masternode owners and Worker Machines (Minners) will be paid using the TNS tokens after a successful transcoding request on the Transcodium Network.The token will be based on the ethereum blockchain and will be an ERC 20 token standard
Also Since Transcodium will employ the proof of stake algorithm of as part of the worker (miner) selection process, workers (minners) will need to prove their wealth by keeping some considerable number of tokens to account to be able to qualify for transcoding contract.