The compression is a cool idea. But it looks pretty rough and if you are watching on a high speed connection you can afford the higher resolution. Can you make this so that it only shows a compressed version if the bandwidth is low?

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Not currently. Nostr isn't set up for that, no centralized server to hold multiple copies of the same video and serve the correct one depending on device and available bandwidth. YouTube and others preprocess the video on their servers, encoding the different versions beforehand.

Seems like something that needs to be sorted out.

This is unfortunately the caveat with decentralized services. In order to upload the video across multiple blossom servers to ensure censorship-resistance, the videos must be 100mb in size. We add automatic compression in order to allow larger videos to be upload if someone is unable or doesn’t know how to compress beforehand.