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 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 outrageous and unconscionable: you're releasing a PeerTube version that doesn't contain the necessary tools to effectively manage videos claimed by rights holders, or to effectively manage the issue of online harassment in comments, or to effectively manage monetization through advertising, or to (insert here your request to PeerTube). It will never work! What do you intend to do about it?"
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.