The #metaverse is inevitable and it's going to be worth TRILLIONS
BUT there’s one huge problem – our current infrastructure can’t support it
Protocols such as @RenderToken aim to fix this and, as such, have the potential to increase in value by 30x – 80x
Here’s how
👇
🧵
BUT there’s one huge problem – our current infrastructure can’t support it
Protocols such as @RenderToken aim to fix this and, as such, have the potential to increase in value by 30x – 80x
Here’s how
👇
🧵
2/
Render is a decentralized “marketplace” that allows users to rent out unused #GPU processing power to #render 3D objects (we’ll explain this in a second)
It has a MC of $123M, FDV of $260M, and its $RNDR token trades at $0.48
In 2021, the token price hit $8.76
Render is a decentralized “marketplace” that allows users to rent out unused #GPU processing power to #render 3D objects (we’ll explain this in a second)
It has a MC of $123M, FDV of $260M, and its $RNDR token trades at $0.48
In 2021, the token price hit $8.76
3/
This thread will cover the following:
• Industry overview
• What problem does Render solve?
• How does it work?
• What are its plans for the future?
• Who are the key players in the ecosystem?
• What are its #tokenomics?
• What’s the potential value of #RNDR?
This thread will cover the following:
• Industry overview
• What problem does Render solve?
• How does it work?
• What are its plans for the future?
• Who are the key players in the ecosystem?
• What are its #tokenomics?
• What’s the potential value of #RNDR?
4/
🔶 Industry Overview
The potential for the #metaverse is mind boggling
It’s billed as the next version of the internet
@Citi believes that it could be worth $13 trillion by 2030 and @ballmatthew thinks it could be worth $30 trillion
🔶 Industry Overview
The potential for the #metaverse is mind boggling
It’s billed as the next version of the internet
@Citi believes that it could be worth $13 trillion by 2030 and @ballmatthew thinks it could be worth $30 trillion
5/
It’s the logical extension of several trends:
• Hyperconnectivity: 5 billion people use the internet (average of 8 hours a day in US)
• Remote Work: 2/3rd of Americans are fully or partially remote
• Acceptance of online culture: 81% of teens hang with friends online
It’s the logical extension of several trends:
• Hyperconnectivity: 5 billion people use the internet (average of 8 hours a day in US)
• Remote Work: 2/3rd of Americans are fully or partially remote
• Acceptance of online culture: 81% of teens hang with friends online
6/
🔶 Problem
But there’s a major problem…
The metaverse will be the biggest computing challenge in history
Vast amounts of processing power will be required to create entire digital worlds with simulated environments, realistic physics, holographic displays, #VR & #AR
🔶 Problem
But there’s a major problem…
The metaverse will be the biggest computing challenge in history
Vast amounts of processing power will be required to create entire digital worlds with simulated environments, realistic physics, holographic displays, #VR & #AR
7/
One of the biggest challenges will be rendering, a process used by computers to create 3D visual displays with texture and detail.
This process is extremely difficult and computationally intensive, and often requires hours to render a single object or frame.
One of the biggest challenges will be rendering, a process used by computers to create 3D visual displays with texture and detail.
This process is extremely difficult and computationally intensive, and often requires hours to render a single object or frame.
8/
For instance, it took Pixar two years to #render Monster’s University…
…and it used one of the 25 largest supercomputers in the world!
For instance, it took Pixar two years to #render Monster’s University…
…and it used one of the 25 largest supercomputers in the world!
9/
Our current infrastructure simply isn’t equipped to handle the volume required
In particular, the cloud today lacks enough GPUs – graphical processing units – required to render the metaverse at scale
(the # of GPUs in the cloud is a fraction of the # in circulation)
Our current infrastructure simply isn’t equipped to handle the volume required
In particular, the cloud today lacks enough GPUs – graphical processing units – required to render the metaverse at scale
(the # of GPUs in the cloud is a fraction of the # in circulation)
10/
GPUs have a variety of uses other than gaming and rendering (they’re most often used in applications that involve machine and deep learning)
As such, there’s a huge demand which – combined with the limited supply – is causing delays and high costs
GPUs have a variety of uses other than gaming and rendering (they’re most often used in applications that involve machine and deep learning)
As such, there’s a huge demand which – combined with the limited supply – is causing delays and high costs
11/
🔶 Solution
Fortunately there’s a simple solution – use the hundreds of millions GPUs we all have on our personal computers!
This is known as decentralized (or “shared”) computing
(i.e. users “rent” unused processing power in exchange for payment in #cryptocurrencies)
🔶 Solution
Fortunately there’s a simple solution – use the hundreds of millions GPUs we all have on our personal computers!
This is known as decentralized (or “shared”) computing
(i.e. users “rent” unused processing power in exchange for payment in #cryptocurrencies)
12/
Shared computing offers several benefits:
• More Processing Power
• Faster Speeds
• Lower Costs
• More Security
• Passive Income
Avivah Lithan of Gartner believes that it represents “blockchain at its best — #P2P networks where underutilized servers are traded”
Shared computing offers several benefits:
• More Processing Power
• Faster Speeds
• Lower Costs
• More Security
• Passive Income
Avivah Lithan of Gartner believes that it represents “blockchain at its best — #P2P networks where underutilized servers are traded”
13/
🔶 Protocol Overview
Render is one of the leaders in decentralized compute and hosts a network of GPUs that customers can use to render visual effects and 3D graphics
🔶 Protocol Overview
Render is one of the leaders in decentralized compute and hosts a network of GPUs that customers can use to render visual effects and 3D graphics
14/
It was initially launched by @JulesUrbach and Malcolm Taylor in 2008 under the name @OTOY
OTOY pioneered the #OctaneRender software, which powered an on-demand cloud rendering service that used centralized cloud providers for processing
It was initially launched by @JulesUrbach and Malcolm Taylor in 2008 under the name @OTOY
OTOY pioneered the #OctaneRender software, which powered an on-demand cloud rendering service that used centralized cloud providers for processing
15/
Urbach soon realized that these centralized providers couldn’t meet the growing needs of cloud rendering
In particular, there were too few resources competing for too many jobs, ↑ prices and slowing execution
As such, he transitioned to a #decentralized network in 2017
Urbach soon realized that these centralized providers couldn’t meet the growing needs of cloud rendering
In particular, there were too few resources competing for too many jobs, ↑ prices and slowing execution
As such, he transitioned to a #decentralized network in 2017
16/
Today, Render is used across a variety of industries including:
• Media
• Industry
• #AR
• #MR
• #VR
• #Gaming
• Medical
Today, Render is used across a variety of industries including:
• Media
• Industry
• #AR
• #MR
• #VR
• #Gaming
• Medical
17/
🔶 How does it work?
Render operates as an automated marketplace – a sort of “AirBnB” for processing power – where users who want to lend unused computing power (called “nodes”) are matched with content creators seeking rendering services
🔶 How does it work?
Render operates as an automated marketplace – a sort of “AirBnB” for processing power – where users who want to lend unused computing power (called “nodes”) are matched with content creators seeking rendering services
18/
The network is powered by the $RNDR token:
• Content creators submit a job request along with a payment in RNDR (which is held in escrow)
• The network automatically assigns the jobs to the appropriate node
• Node operators complete the work and the escrow is released
The network is powered by the $RNDR token:
• Content creators submit a job request along with a payment in RNDR (which is held in escrow)
• The network automatically assigns the jobs to the appropriate node
• Node operators complete the work and the escrow is released
19/
Render uses a system known as Proof-of-Render to protect the network against bad actors
Nodes receive a score through a combination of technical (e.g. compute potential) and manual (e.g. customer feedback) factors
Those with low scores can be penalized or ignored
Render uses a system known as Proof-of-Render to protect the network against bad actors
Nodes receive a score through a combination of technical (e.g. compute potential) and manual (e.g. customer feedback) factors
Those with low scores can be penalized or ignored
20/
🔶 Long-Term Vision
Render’s aspirations go beyond just decentralized compute
It ultimately hopes to become the defacto standards provider for the open #metaverse – creating tools & infrastructure such as next-generation #NFTs & immersive real-time streaming services
🔶 Long-Term Vision
Render’s aspirations go beyond just decentralized compute
It ultimately hopes to become the defacto standards provider for the open #metaverse – creating tools & infrastructure such as next-generation #NFTs & immersive real-time streaming services
21/
🔶 Market
It’s difficult to approximate Render’s true market potential due to its lofty aspirations, but the closest comp right now is the “#GPU as a Service Market”, which is expected to increase from $2.8B in 2022 to $81B in 2032 (40% CAGR)
🔶 Market
It’s difficult to approximate Render’s true market potential due to its lofty aspirations, but the closest comp right now is the “#GPU as a Service Market”, which is expected to increase from $2.8B in 2022 to $81B in 2032 (40% CAGR)
22/
🔶 Competition
This space is currently dominated by the “Big 3” cloud providers – Amazon AWS, Google Cloud and Microsoft Azure
🔶 Competition
This space is currently dominated by the “Big 3” cloud providers – Amazon AWS, Google Cloud and Microsoft Azure
23/
There are also decentralized peers such as Golem, Livepeer and Akash (although most of these players have different use cases and / or focus on CPU compute)
Furthermore, some decentralized storage providers, such as Filecoin, are likely to eventually move to compute
There are also decentralized peers such as Golem, Livepeer and Akash (although most of these players have different use cases and / or focus on CPU compute)
Furthermore, some decentralized storage providers, such as Filecoin, are likely to eventually move to compute
24/
🔶 Traction
Since launching in 2017, #Render has built the most widely used decentralized GPU computing network in the world
It has rendered over 5-million frames to date and helped generate over $500 million in #NFT sales in 2021
🔶 Traction
Since launching in 2017, #Render has built the most widely used decentralized GPU computing network in the world
It has rendered over 5-million frames to date and helped generate over $500 million in #NFT sales in 2021
25/
The protocol has been used by notable creators such as @thealexrossart, Gene Roddenberry and @beeple
Its #Octane app has a strong reputation in Hollywood & has been used for a variety of high-profile projects, including Westworld and @LilNasX’s MONTERO music video
The protocol has been used by notable creators such as @thealexrossart, Gene Roddenberry and @beeple
Its #Octane app has a strong reputation in Hollywood & has been used for a variety of high-profile projects, including Westworld and @LilNasX’s MONTERO music video
26/
🔶 Team
Parent #OTOY lists 62 employees on LinkedIn including CTO Charlie Wallace, COO @drjonessf and Director of Strategy @phillipgara
🔶 Team
Parent #OTOY lists 62 employees on LinkedIn including CTO Charlie Wallace, COO @drjonessf and Director of Strategy @phillipgara
27/
🔶 Advisors
Render has a strong team of advisors from Hollywood, Silicon Valley and Web3 including Ari Emmanuel, @jjabrams, @BrendanEich, Beeple, Jennifer Zhu Scott, Demian Brener, @maraoz, @DavidVorick
🔶 Advisors
Render has a strong team of advisors from Hollywood, Silicon Valley and Web3 including Ari Emmanuel, @jjabrams, @BrendanEich, Beeple, Jennifer Zhu Scott, Demian Brener, @maraoz, @DavidVorick
28/
🔶 Investors
Notable investors include @generalcatalyst, Addition, @KeneticCapital, @multicoincap and @NGC_Ventures
🔶 Investors
Notable investors include @generalcatalyst, Addition, @KeneticCapital, @multicoincap and @NGC_Ventures
29/
🔶 Tokenomics
$RNDR has a fixed total token supply of 537M
The initial allocation was:
• 25% released in the public sale
• 10% to the reserve (founders & contributors)
• 65% released over time to power transactions on the network
254M are in circulation today
🔶 Tokenomics
$RNDR has a fixed total token supply of 537M
The initial allocation was:
• 25% released in the public sale
• 10% to the reserve (founders & contributors)
• 65% released over time to power transactions on the network
254M are in circulation today
30/
🔶 Valuation
The global market for GPU-based cloud compute is expected to reach $80B by 2032
If #RNDR can become one of the top 3 players in this space and capture 10% to 30% market share, its valuation could rise to $8B to $22B (a 30x to 80x return from today)
🔶 Valuation
The global market for GPU-based cloud compute is expected to reach $80B by 2032
If #RNDR can become one of the top 3 players in this space and capture 10% to 30% market share, its valuation could rise to $8B to $22B (a 30x to 80x return from today)
31/
An $8B to $22B FDV is by no means unrealistic
In fact, seems conservative as that wouldn’t even crack the top 100 in the list of largest tech companies by market cap
An $8B to $22B FDV is by no means unrealistic
In fact, seems conservative as that wouldn’t even crack the top 100 in the list of largest tech companies by market cap
32/
Indeed, thinking of $RNDR as shared GPU provider represents a relatively niche case
The protocol could theoretically capitalize on any traction and expand into the overall cloud computing market, which represents a much bigger prize at an estimated TAM of $1.6T
Indeed, thinking of $RNDR as shared GPU provider represents a relatively niche case
The protocol could theoretically capitalize on any traction and expand into the overall cloud computing market, which represents a much bigger prize at an estimated TAM of $1.6T
33/
🔶 The Big Picture
Render will likely continue to play an important role in cloud rendering
Not only does it have the potential to supplement traditional solutions, but it will likely be better for the consumer
But – IMO - that’s not even it’s most important benefit…
🔶 The Big Picture
Render will likely continue to play an important role in cloud rendering
Not only does it have the potential to supplement traditional solutions, but it will likely be better for the consumer
But – IMO - that’s not even it’s most important benefit…
34/
Currently, one of the biggest threats to the #metaverse is control by a centralized entity such as Google, Meta, Amazon or Apple
Decentralized solutions such as @RenderToken could help prevent that, ultimately securing the future of Web3
Currently, one of the biggest threats to the #metaverse is control by a centralized entity such as Google, Meta, Amazon or Apple
Decentralized solutions such as @RenderToken could help prevent that, ultimately securing the future of Web3
35/
If you want to learn more about #RNDR, check out these accounts:
@C3_Nik
@col_jung
@cryptomanran
@ImMachineAlpha
@OddStoekTrqder
@VinnyLingham
If you want to learn more about #RNDR, check out these accounts:
@C3_Nik
@col_jung
@cryptomanran
@ImMachineAlpha
@OddStoekTrqder
@VinnyLingham
I hope you've found this thread helpful.
Follow me @MTorygreen for more fundamental analysis on Web3 protocols.
Like/Retweet the first tweet below if you can:
Follow me @MTorygreen for more fundamental analysis on Web3 protocols.
Like/Retweet the first tweet below if you can:
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