this sounds like decentralized anon network to me, like i2p... but with access to the clearnet. https://geti2p.net/en/
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Bad actors might only feed on such a networks without seeding, so you will need some kind of good actor reward in your proposed system.
Some YouTube clients allow "local extraction" (FreeTube and LibreTube, to name a couple), which sidesteps the need for an instance altogether. However, that then means either 1. You use a VPN to hide your IP from YouTube and risk getting the VPN server IP banned or 2. You don't use a VPN, expose your IP to YouTube, and have a (small) chance of banning your own IP.
The best alternative would be to remove YouTube altogether and switch to something like PeerTube or Odysee, but you can't expect all your favorite creators to be there.
In the long term a switch wood be good, yes. But I am impressed by youtubes ability to load 10+ year old videos without problems, and I am afraid this is only possible because of their immense scale.
GrayJay works fine for me
I think this is absolutely doable to problem is you need to have enough users on all the time to make this sort of thing work soa doptionn is important. You could probably piggy back off existing open source projects to get it going.
Do I understand correctly, what you mean is that there is an Invidious instance to which two users are connected. User A sends request to Invidious to get a video, Invidious forwards it to user B, user B downloads the video and sends it back to user A?
Sounds a lot like Tor or maybe I am missing something?
Yes, it's basically like it, but i don't think it would be possible just from a web browser
So, kinda like a cross between FreeTube and Torrent? Interesting idea...
Kinda sounds like you're describing Tor
Thinking about it, this really looks similar