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

The Render Network (RNDR) tries to help artists, designers, and GPU owners. In particular, Render tries to monetize idle GPUs.

A Graphics Processor Unit (GPU) is a computer unit built for parallel processing. GPUs’ original purpose was rendering or creating three-dimensional (3D) graphics and images. GPUs are popular because they are one of the most versatile pieces of computer technology.

For example, they use GPUs to support gaming, artificial intelligence (AI) development, video rendering, visual effects, game design, cryptocurrency mining, blockchain nodes, art, high-performance computing, deep learning, film and TV production, metaverse projects, virtual reality, and machine learning.

GPUs are widely-used because they are powerful enough to run the most complex programs and algorithms. In particular, many AI, deep learning, and machine learning applications can only run on GPUs.

GPUs are Big Business

Graphics Processor Units (GPUs) are a lucrative business. America’s top GPU maker NVIDIA (NVDA) reported $6.051 billion in total revenues on 31 January 2023.

NVIDA also reported a quarterly gross profit of $3.833 billion on 31 January 2023. Mr. Market is a big believer in NVIDIA and GPUs. He paid $282.10 for NVIDIA shares on 2 May 2023.

The worldwide GPU market could grow from $40 billion in 2022 to $400 billion in 2032, Statista forecasts. Hence, GPU demand could grow by 100% if Statista is correct.

Demand for GPUs often outstrips supply. There was a highly publicized GPU shortage in 2021, which included empty shelves. GPU demand was high because of a cryptocurrency and AI boom.

Consequently, buyers often pay more than the list price for GPUs. For example, the NVIDIA RTX 4090 sticker price is $1,600. Yet they were selling for $2,000 in 2022.

The Render Network Business Model

The high prices make it hard for many artists, designers, and freelancers to access GPUs. Yet these people need GPUs to make their art and do their jobs.

Founder Jules Urbach started the Render Network to fill that need. The Network lets owners sell unused GPU power to creators who the computing power.

For example, an independent artist or game designer can buy the extra GPU she needs with Render Tokens (RNDR). The artist can make extra money by renting her GPU to other artists through the Render Network.

The Render Network allows artists and designers to increase their computer powering without buying expensive additional GPUs. It can also give freelancers an extra source of income.

Cloud-Based Rendering

Artists can store their work on the Render Network’s blockchain. They hope the Render Network blockchain could become a universally accessible location for artists to store their digital work.

GPU owners become Node Operators or GPU Providers in the Render Network. Creators or GPU Requesters pay Node Operators RNDR to access GPUs. The Render Network makes money by charging small fees on transactions.

The ultimate hope for the Render Network is to make cloud based rendering commonplace. Theoretically, cloud based rendering could allow any artist with an internet connection to create digital art on GPUs all over the world.

One Render Network goal is to make digital art cheaper and more accessible by increasing access to GPUs. In particular, Render Network could give any filmmaker or TV producer access to high-quality computer-generated special effects.

Notably, Hollywood super agent, and Endeavor Group (EDR) CEO, Ariel Emanuel is a member of Render Network’s advisory board. Other board members include A-list Hollywood director and TV producer J.J. Abrams. Urbach is the CEO and co-founder of cloud graphics company OTOY Inc.

What Value can the Render Network (RNDR) deliver?

Interest in the Render Network (RNDR) is strong. For example, the Render Token (RNDR) was CoinMarketCap’s fourth most-trending cryptocurrency on 1 May 2023.

Render (RNDR) was CoinMarketCap’s 60th ranked cryptocurrency with a $2.11 Coin Price on 2 May 2023. Render had a $206.895 million Market Cap, a $206.895 million Fully Diluted Market Cap, and a $208.496 million 24-Hour Market Volume on 2 May 2023.

In contrast, Render had a $205.817 million Centralized Exchange (CEX) volume, and a $1.078 million Decentralized Exchange (DEX) Volume on 2 May 2023. They base those numbers on a Circulating Supply of 363.912 million RNDR, a Maximum Supply of 536.871 million RNDR and a 530.963 million RNDR.

In the final analysis, I consider Render an interesting token that could make money. I think Render can make money because the Render Network fills a real-world need: demand for GPUs.