Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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Piped is just a front end and the data is still on Youtube servers right? Honestly that is probably enough but I'll check out the one /u/[email protected] suggested.
That's right, but from a user data perspective, Google does not know that you are the one watching the video, so it cannot sell your data.
Depends on how many other users are using the same proxy. If you host piped for yourself using your home internet connection, Google will absolutely know who is watching the video.
Your plan sounds like exactly what Piped or Invidious are doing, just that you do want to do it yourself, on your server, so it's worse in terms of privacy.
Piped consists of a frontend, a backend and a proxy. The frontend is the site you see, the backend stores all the data like video information, user accounts and subscriptions, and the proxy loads the videos you watch from YT. The only thing it doesn't do is download and store the videos, it'll always stream them on demand.