Can the Render Network (RNDR) make money from GPUs?

The Render Network (RNDR) is an effort to democratize and decentralize graphics processing units (GPUs).

Essentially, Render’s builders want to create a network of GPUs anybody can use. Graphics processor units are the expensive chips that games, streaming video, artificial intelligence, cryptocurrency mining, and many other processes upon. GPUs can be expensive.

In particular, Render’s builders hope to give all artists access to state-of-the-art graphics. For example, people trying to create games or animation. Many artists and others cannot afford GPUs. Yet, there are millions of idle GPUs in phones, PCs, and other devices.

The idea is to create a blockchain that allows people to access and use all those idle GPUs. Similarly, GPU owners can make money by renting out their idle GPU power. For example, a gamer could rent out his gaming computer’s GPU while she is at work.

The Render Network

Additionally, the Render Network can democratize Digital Rights Management by creating a ledger-based storage protocol artists can use to store and access designs.

Users submit jobs to the Render Network. The Render Protocol calculates the amount of RNDR required to perform the job. They attach the job details to a smart contract and send it through the Render Network. The smart contract lets a GPU owner use OctaneRender to process the job. Once the Job is complete, the smart contract pays the GPU owner with Render (RNDR) tokens.

They call OctaneRender, the world’s first and fastest GPU-accelerated, unbiased, and physically correct renderer. Rendering is the generation of images by computer programs on a GPU. They claim OctaneRender is the world’s first commercial renderer that exploits graphics cards rather than a central processing unit (CPU). Hence, Render decentralizes rendering.

How Render Monetizes GPUs

The Render Network transforms GPU owners into Node Operators who rent their units for RNDR tokens. Creators are artists and designers who submit jobs to the Node Operators through the network. The ultimate hope at Render is to build a decentralized economy based on 3D assets.

Potential uses for the Render Network include game design, augmented reality, metaverse projects, virtual reality, design, artificial intelligence, movie and television production, art, cryptocurrency mining, and animation.

One Render Token is worth 256 hours of work. They claim this reflects the processing power of GPUs in a rig. They have a measure of power they call OctaneBench.

Render has some impressive blockchain partners, including Decentraland (MANA), Sia (SC), the Basic Attention Token (BAT), and Algorand (ALGO). The hope at Render is to raise $70 million to finance construction of the Render Network?

What Value Does the Render Network have?

Mr. Market has some interest in the Render Network. The Render Token (RNDR) was CoinMarketCap’s 17th most-trending cryptocurrency on 31 July 2022.

In contrast, Render was CoinMarketCap’s 154th largest token with a 67.52₵ Coin Price on 4 August 2022. CoinMarketCap gave Render a $171.365 million Market Capitalization, a $362.495 Fully Diluted Market Cap and a $13.878 million 24-Hour Market Volume on 4 August 2022. They base numbers on a 253.799 million RNDR Circulating Supply, a 536.871 Maximum Supply, and a 530.963 million Total Supply.

Meanwhile, CoinBase gave Render a 67₵ Coin Price, a $171.1 million Market Cap, and a $13.9 million 24-Hour Market Volume on 4 August 2022. They base those numbers on a Circulating Supply of 253.8 million RNDR. Render was CoinBase’s 80th most popular cryptocurrency on 4 August 2022. I consider Render an unstable cryptocurrency because CoinBase gave it a $8.76 all-time Coin Price.

Is there a Market for Render?

Graphics processor units (GPUs) are an enormous and profitable business. For example, America’s most respected GPU maker NVIDIA (NVDA) reported quarterly revenues of $8.288 billion, a quarterly gross profit of $5.431 billion, and a quarterly operating income of $1.868 billion on 30 April 2022.

NVIDIA shows GPUs are money machines. For instance, NVIDIA had $20.338 billion in cash and short-term investments on 30 April 2022. Plus, NVIDIA is growing fast, Stockrow calculates NVIDIA’s revenues grew by 46.41% in the quarter ending on 30 April 2022. NVIDIA’s revenue growth rate fell from 83.8% in the quartering ending on 30 April 2022.

I think NVIDIA (NASDAQ: NVDA) shows GPUs can be a lucrative business. Notably, Mr. Market paid $192.15 for shares on NVIDIA on 4 August 2022. However, NVIDIA’s share price fell from $333.76 on 29 November 2021.

I think NVIDIA’s profits show there is a market for Render. NVIDIA shows GPUS can make money. However, there is no evidence, Render can build its GPR network or monetize GPUs. Thus, Render is an interesting idea for a blockchain, not a sound investment.