Basically yes. you can essentially think of it as a live, streaming torrent system. Best way to picture it, imo. In fact Mathias apparently built the streaming functionality into torrents that another team forked and used to make Popcorn Time, which i just learned watching an 8 year old video of his the other day. So that's essentially where this all originated from.
Discussion
In that case, it seems like it could replace many centralized services, while giving us something technically better, if I understand it correctly. If the people developing such a service keep their hands out of the DRM, user-hostile, side of things, perhaps we could have something similar to a Youtube with automatic youtube-downloader, not as a workaround but as a part of how the system functions. A video "site" without the copyright strikes that has killed a lot of good content on YT. That would be awesome if it catches on.