At open edX conference we came to know that Appsembler has already built a new video xBlock with RaccoonGang to address video security concerns. The xBlock currently is in beta version and not completed yet. Here is list of key features that they've implemented:
Here are few things that they do not support at the moment
For detailed version, please look at this blog post https://www.appsembler.com/blog/deliver-videos-securely-open-edx-courses-new-video-xblock/
https://www.appsembler.com/blog/why-open-edx-needs-an-alternative-video-xblock/
For video xblock repository https://github.com/appsembler/xblock-video
VideoJS repository https://github.com/MarCnu/videojsXBlock
We're not sure which path to follow at this point but i think we can work on other high priority projects (auto-generated video images, new authoring UX for video component and some transcripts related work) in current video xModule until we come up with final decision and plans to adopt new xBlock.
But here are few paths that we can follow:
Stick to our main plan
Create a shell video xBlock, but then duplicate all the existing code into the new xBlock. Initial release includes all existing code. Then iterate on the new xBlock by incrementally removing all the extra stuff that's no longer needed. Refactor at each iteration with clean-code practices in mind.