It serves two purposes on a PeerTube instance: it ensures all videos can be played optimally in the web interface, and it generates different resolutions for the same video.
It's based on <a target="_blank" rel="noopener noreferrer" href="https://activitypub.rocks">ActivityPub</a> to connect with tools <a target="_blank" rel="noopener noreferrer" href="https://peertube.cpy.re/videos/watch/da2b08d4-a242-4170-b32a-4ec8cbdca701">like Mastodon</a> for example.
It's based on <a target="_blank" rel="noopener noreferrer" href="https://en.wikipedia.org/wiki/WebRTC">WebRTC</a>, a free and open-source project for web browsers.
It's the reason why we encourage developers to use the <a target="_blank" rel="noopener noreferrer" href="https://docs.joinpeertube.org/contribute/plugins">PeerTube plugin API</a> to create their own monetization system.
Let PeerTube save and store your original video file so you no longer have to keep it on your hard drive anymore (this option must be enabled by your administrator)
Like the other tools developed by <a target="_blank" rel="noopener noreferrer" href="https://framasoft.org/en">Framasoft</a>, <strong>PeerTube considers you as a person and not as a product</strong> to be profiled and locked in video loops.