AI+GPU DePIN is a hot topic in the current Web3 industry and is also considered an important track that may lead industrial transformation.

The basic logic of AI+GPU DePIN is to provide computing power support for AI training and use through a large number of GPUs distributed around the world to form a decentralized physical infrastructure network (Decentralized Physical Infrastructure Networks, DePIN).

Judging from the current development of AI products, this track has great potential. However, it is relatively simple to realize a network where miners use GPUs to access and mine. The challenge lies in truly building a valuable and in-demand network.

Aethir is one of the DePIN networks that has attracted much attention from the market. On March 20, Aethir sold 60,000 nodes in just 2 hours, which was worth more than US$92 million based on the price of ETH at the time.

The Aethir node was initially sold for 0.1259 ETH, which rose to 1.8232 ETH in May, a 14-fold increase. The node’s cumulative sales reached $130 million.

Next, this article will deeply analyze Aethir’s application scenarios, technical implementation, and ecosystem to explore why the project is favored by the market.

➤Application scenarios and prospects of Aethir

❚AI training and inference

Although there is no need to prove the prospects of AI through data, the AI ​​industry is still in its early stages of development and has huge potential.

In an article published in 2018, OpenAI calculated: "Three factors drive AI progress: algorithm innovation, data, and the amount of computing available for training." "From 2012 to 2018, the amount of data used for AI training doubled every 3.4 months. In 6 years, the amount of computing increased 300,000 times."

On the other hand, a CSET AI report states: "Excess demand has pushed GPU prices to double or triple the retail price. GPU shipments in the second quarter of 2021 were 123 million, of which Nvidia accounted for 15.23% of the total, indicating that Nvidia sells about 75 million GPUs per quarter. Once manufactured, most GPUs are used in non-AI applications such as PCs, gaming, or cryptocurrency mining."

The conclusion is: GPUs are in short supply, especially for AI computing, where GPUs are a scarce resource.

Computing power will limit the evolution and development of AI programs, especially for start-up AI projects. In the initial stage of the project, purchasing computing power on your own will bring greater cost pressure and economic risks.

As a decentralized GPU DePIN network, Aethir can meet the computing power needs of AI products, especially helping startup AI projects through the algorithm training phase. Initial AI projects have a rigid demand for third-party computing power during the training phase.

On the one hand, Aethir provides decentralized computing power support for the training and application of AI products, which is conducive to the development of the AI ​​industry. On the other hand, it provides mining opportunities for idle scattered computing power.

This is also the fundamental meaning of the Aethir DePIN network - to integrate GPU resources in a decentralized manner to maximize the application and value of GPU computing power.

❚Cloud Gaming

What is cloud gaming?

Traditional games perform computing and rendering tasks on the client, which is why many gamers spend a lot of money on top-of-the-line graphics cards.

However, cloud gaming is different. The advantage of cloud gaming is that it does not require high client hardware for players. And it can run across multiple devices such as Android, Apple, and PC.

Because the computing and rendering tasks of cloud games are performed on cloud servers, the player's client is easy. Ordinary computers, mobile phones, etc. can play cloud games.

These GPUs on Aethir's DePIN network can be used as cloud servers to perform computing and rendering tasks for cloud games.

Cloud gaming has the advantages of low barriers to entry and cross-platform operation, and is currently a blue ocean market.

Fortune Business Insights report shows that the North American cloud gaming market has shown a steady growth trend since 2019, and predicts that this trend will continue. "The global cloud gaming market size will be 5.76 billion in 2023, and is expected to grow to 126.62 billion US dollars in 2032, with a compound growth rate of 37.9% during the forecast period."

❚Virtual Reality and the Internet of Things

In addition to AI and games, AR (augmented reality)/VR (virtual reality)/MR (mixed reality)/XR (augmented mixed reality) products also require large computing power, and Aethir can also be the computing network for such products.

As a decentralized physical infrastructure network, DePIN itself belongs to the Internet of Things. In real applications, various IoT devices such as sensors, smartphones, cars, and home appliances also require Aethir's distributed computing power when computing is required.

➤Technical implementation of Aethir

❚DePIN Network

As a DePIN network, Aethir consists of three types of nodes (i.e. miners): containers, indexers, and checkers. The three parties collaborate and supervise each other to form a stable and secure decentralized technical framework.

•container

Responsible for executing users' remote computing and rendering tasks in real time. The core hardware of the container is the GPU. GPUs of different performances provide different computing power for AI program computing and cloud game rendering.

• Indexer

Responsible for indexing, matching the appropriate container to perform tasks according to the needs of the user. When matching, it will comprehensively consider factors such as the needs and container status, service quality, network latency and cost, so as to ensure that users have an efficient and smooth computing and rendering experience, while making the best possible use of container nodes around the world.

• Inspector

Responsible for evaluating the quality of work done on the container.

The checker randomly checks the container node when it is registered, on standby, or performing tasks. In addition, the checker is responsible for monitoring the performance of the container, including computing power, response time, network latency, etc., and submitting it to the indexer so that the indexer can perform matching work. If the checker finds that the service quality of the container node is not up to standard, it will upload the information to the Aethir network, and the blockchain protocol will execute penalties on the container node, including lowering its priority and reducing the probability of assigning tasks.

Currently, Aethir has launched the testnet version of the "Checker Owner Portal" and "Checker Client" GUI/CLI software. Among them, the "Checker Owner Portal" is used by the checker node owner to manage the node, view and withdraw rewards. The "Checker Client" is used to run the checker node.

Containers are the functional guarantee for the Aethir network to meet user needs.

Indexers are the guarantee of efficiency of the Aethir network.

The Inspector is the security of the Aethir network.

•Aethir network workflow

Application integration: For the applications in the four demand scenarios mentioned above, their developers need to stake $ATH tokens to integrate with the Aethir platform.

Issue computing requests: After integration, users or developers issue requests to the Aethir network when various applications are in use and when AI applications are being trained.

Task matching: The indexer accepts the request and selects a suitable container to execute the task. The inspector evaluates the execution of the container.

Containers, indexers, and checkers can receive token rewards after successfully completing their respective tasks. Of course, miners need to stake $ATH tokens and purchase NFTs of corresponding nodes to obtain mining rights.

❚POR consensus algorithm

The consensus algorithm is the key to network decentralization. As a DePIN network that performs computing and rendering tasks, Aethir uses the POR consensus algorithm, which stands for Proof of Rendering.

The rendering capability proof integrates verification transactions, invested tokens, and working frequency. Every 15 minutes, the Aethir network will randomly select some nodes to perform verification transactions, thereby obtaining the computing and rendering capabilities of the nodes; the node's investment of tokens is essentially the node's credit commitment. The more tokens invested, the lower the probability of the node defaulting or doing evil, and the higher the integrity; the lower the frequency of a node being selected, the higher the probability of being selected to perform a task (while considering the matching degree of the node's performance with user needs). This design is to ensure fairness.

The rendering proof of work is performed according to user needs, including indicators such as processing speed, response time and stability, as a proof of the quality of the node's work.

Proof of rendering capability and proof of rendering work are the basis for nodes to receive rewards, which motivate nodes to better perform computing and rendering tasks in the Aethir network.

Aethir uses the OctaneBench component to calculate the GPU rendering speed in units of OBh (OctaneBench Points per Hour), and uses this as one of the main pricing bases for demand-side pricing and container node rewards.

❚Edge computing

Edge computing is one of Aethir's important technologies and also one of the core technologies of Web3 applications.

What is edge computing? As mentioned earlier, cloud gaming is about handing over computing and rendering tasks to cloud servers instead of clients. Edge computing, on the other hand, is about handing over tasks to servers that are as close to the user as possible.

For example, a Montreal player A of a cloud game issues a computing request during the game. Aethir's indexer selects a container node in Montreal to perform A's computing task. Another Tieling player B issues a rendering request. After indexing, the index server finds that there is no container node in Tieling, so it matches a container in Hangzhou, which is close to B, to complete B's request. This is edge computing. The server that performs edge computing tasks is called an edge server.

Seeing this, everyone should understand that as a DePIN network spread all over the world, Aethir itself is suitable for edge computing.

Without edge computing, computing or rendering tasks would be completed by distant servers, which would then transmit the corresponding information back, which would be inefficient.

The Aethir network uses edge computing technology to meet the rigid demand for edge computing in applications such as AI, cloud gaming, virtual reality, and physical networks.

When performing edge computing tasks, Aethir will use algorithms to comprehensively calculate the computing power of container nodes, network transmission capabilities, etc., and comprehensively consider computing, caching, storage and transmission to provide users with the best possible edge computing services.

❚ Aethir Edge

In terms of hardware, Aethir has already launched related products. April 18, 2024 - Aethir launched Aethir Edge at the official launch of Token 2049 in Dubai.

Aethir Edge is hardware for edge computing. It uses Qualcomm 865 chip and integrates Aethir's distributed GPU cloud infrastructure. It can perform edge computing tasks such as AI, games, and real-time video streaming. At the same time, it participates in Aethir network mining and obtains exclusive incentives of 23% of the total supply of $ATH.

It can be considered that Aethir Edge is a mining machine, and its appearance looks like a mini PC host (the actual specific size is unknown).

➤Aethir Ecosystem Application Case Aphone

Aethir is a Web3 supply-side ecosystem including AI and cloud gaming, while Aphone, as the first decentralized cloud smartphone, is a Web3 demand-side product.

Aphone will have a built-in Web3 application store, forming a more professional entrance to the Web3 market.

Aphone is based on the Aethir network, so it provides users with a better Web3 experience, including but not limited to stronger security, Web application convenience, faster rendering of cloud games, more mining opportunities, etc.

As an ecological application based on the Aethir network, Aphone has been welcomed by the market. As of now, the number of users has reached more than 36,000.

➤Aethir's ecological status

According to official website data, Aethir has more than 200,000 users, nodes in more than 20 countries and regions around the world, and more than 10 cooperating game studios.

❚Node Ecosystem

According to Blockchain News, there are more than 1,000 H100 GPUs on the Aethir network. (H100 GPU is a high-performance computing and AI accelerator launched by NVIDIA, mainly used to meet the growing computing needs of AI and machine learning models)

According to Dune public data, Aethir has sold a total of 74,673 checker node NFTs, of which 29,544 were whitelisted and 45,129 were publicly sold.

❚Cooperative Ecosystem

Aethir has established partnerships with multiple projects or institutions, including 24 projects or teams from AI, blockchain, game studios, metaverse, Web3 infrastructure, etc. These include well-known institutions and projects such as Well-Link, Magic Eden, and IO.NET.

• Weiling Times

In February 2024, Aethir established a partnership with Well-Link Tech. Well-Link Tech (Chinese name "蔚領时代") is the cloud version developer of the famous mobile game miHoYo.

•IoTeX

In April 2024, DePINscan, a DePIN data browser under the DePIN infrastructure IoTeX, included Aethir.

•CARV Protocol

Aethir's cloud gaming technology will be embedded into CARV Play, a Web3 game distribution platform with 2.5 million users. Aethir provides GPU computing power to CARV Play gamers and reaches 2.5 million users at the same time.

•NodeOps

NodeOps has partnered with Aethir to enable easy and seamless deployment of Aethir’s inspector nodes based on NodeOps’ node service.

•KIP Protocol

In May 2024, KIP Protocol, the Web3 base layer for AI, established a partnership with Aethir. KIP Protoc is the champion project of the 2023 Chainlink hackathon.

……

•IO.NET

For example, Aethir has established in-depth cooperation with another well-known DePIN project IO.NET, including financing of technology and ecology. The H100 GPU of the Aethir network can automatically connect to the IO network and participate in the mining of Aethir and IO.NET at the same time.

It’s not just Aethir+IO.NET dual mining.

IO.NET uses virtualization technology to allow connected GPUs to be shared and used by multiple virtual machines. On the other hand, the orchestration technology and network layer can optimize the demand configuration for Aethir's GPU network. In short, IO.NET enables the GPU resources of the Aethir network to be more fully utilized. And Aethir expands the GPU node network infrastructure for IO.NET.

The cooperation between Aethir and IO.NET has improved the service efficiency of the supply side (computing and rendering nodes) to the demand side (AI, cloud games and other applications), and further promoted the development of applications such as AI and cloud games.

❚ Social Media

Aethir’s eco-heat can be seen through social media.

As of now, Aethir’s official Twitter account has 820,000 followers, its Telegram community has nearly 270,000 members, and its Discord community has 460,000 members.

Aethir's node operators, crypto investors, and people interested in Web3, AI, and cloud gaming are highly active in the community.

➤Token Economic Model

❚Token application scenarios

The token economy is the economic core of the Web3 ecosystem and is the decentralized incentive layer for Aethir's network and rendering services.

In centralized infrastructure services, customers pay fiat currency for computing and rendering services. In the Aethir network, customers pay $ATH tokens for edge computing, cloud rendering and other services. Application developers can pledge $ATH to deploy AI, cloud gaming and other applications in the Aethir network.

In centralized infrastructure services, centralized service providers still use their brand reputation to guarantee service quality and obtain legal currency income. In the Aethir network, nodes access the network in a decentralized manner, pledge $ATH to ensure service quality, and obtain $ATH income.

In centralized infrastructure services, centralized service providers are responsible for managing the system. In the Aethir network, ecosystem participants use $ATH to jointly govern the ecosystem.

Aethir provides decentralized computing and rendering services for applications such as AI and cloud gaming. $ATH plays an important role in this regard. It is a form of payment, a form of pledge guarantee, and a form of incentive.

Therefore, $ATH is one of the guarantees of the quality, efficiency and security of the Aethir network services, and one of the manifestations of the decentralization of the Aethir network. The token distribution of $ATH also reflects these characteristics.

❚Token Distribution

In the $ATH token distribution, except for the Edge/Enterprise/IDC part, the remaining distribution does not exceed 20%.

Among them, the team and consultants account for a large proportion, accounting for 17%, but there is an 18-month cliff and a 36-month linear release. Therefore, it takes a total of four and a half years from the issuance of the coin to the full release.

Ecosystem incubation (8%) and DAO Treasury (6.5%) are actually also in the hands of the team, but the total proportion of these two parts is only 14.5%. Ecosystem incubation will release 50%, and the rest will be unlocked linearly within 24 months. The DAO Treasury will be unlocked linearly within four years.

For Edge/Enterprise/IDC, rewards are distributed according to the reward table for container nodes and checker nodes. This part is related to the actual application of Aethir. When nodes provide computing and rendering services to users, they receive $ATH rewards. However, at the same time, applications such as AI, cloud games, and individual artists also need to pay or pledge $ATH when using Aethir's services.

➤Aethir Project Background

❚ Financing

Aethir has raised more than $130 million through node sales and financing.

Among them, the lead investors in the Pre-Series A round of financing include HashKey Capital, Merit Circle, Sanctor Capital and CitizenX Crypto Ventures.

❚Team

• Co-founder & CEO

Location: Singapore

Graduated from Princeton University, an expert in business management and brand operations. Has extensive market and investment experience in the gaming and blockchain fields. His strategic management capabilities have been highly recognized on LinkedIn.

He previously worked for Riot Games, the developer of the game "League of Legends", where he served as global distribution director and COO of China.

Venture partner at Infinity Ventures Crypto and advisor to social gaming platform NOTA.

• Co-founder & CCO — Mark Rydon

Location: Singapore

Graduated from the University of Queensland, Australia, he is a senior civil engineer and project management professional. He once worked in the famous American Bechtel Engineering Company for project management.

Partner of blockchain venture capital institutions Flux Capital and Gaas Global, and consultant of social gaming platform NOTA.

•CTO Kyle Okamoto

Location: United States

Senior technical management expert in the fields of communications, Internet of Things, and edge computing.

Graduated from the Stern School of Business at New York University, he is an engineer with an MBA. He has worked in network operations, product and marketing manager at Verizon, the largest wired communications company in the United States. CEO of the IoT, automotive and security business unit of Ericsson, a mobile communications equipment company. CEO of Ericsson's edge computing platform Edge Gravity.

Advisor to SWAG'R, a gamification and social advertising AR platform, advisor to Theta Labs, a blockchain company, and venture capital scout and angel investor for Alumni Ventures, a venture capital firm.

In general, the Aethir core team has extensive experience in Web2 and Web3, covering management, investment, and entrepreneurship. In particular, the CTO's rich experience in cloud gaming, IoT, and edge computing platform development and management is highly compatible with Aethir.

➤Written at the end

The name of Aethir's token is ATH, which is very interesting. ATH is a common word in the financial field, which is the abbreviation of "All-Time High", which means the highest point in history. It can be seen that the operation of this project is unique.

Institutional financing and node sales reflect that Aethir is welcomed by capital and the market.

Aethir's four major demand scenarios are AI, cloud gaming, virtual reality, and the Internet of Things. The project has indeed established strategic cooperation with many AI, gaming, virtual reality and other products. These products may gradually become demanders of the Aethir network, staking $ATH to integrate with Aethir. After the integration, users of AI, gaming and other products can obtain decentralized computing and rendering services through Aethir.

Among them, AI applications have broader development prospects and more urgent demands for computing resources of the Aethir network; cloud games also show potential and have certain demands for edge computing and cloud rendering of the Aethir network.

Data shows that GPU computing is in short supply in fields such as AI and games. As a decentralized GPU DePIN network, Aethir may have stronger competitiveness. Currently, Aethir is making comprehensive arrangements in the fields of AI and cloud games.

On the computing power supply side:

Aethir's partner organizations and team members are highly adaptable to products and edge computing services such as AI, cloud gaming, virtual reality, and the Internet of Things.

Aethir's node network is thriving around the world, with more than 70,000 checker nodes providing security for Aethir.

With more than 1,000 top-level GPU H100s (and the number is still increasing) and a considerable number of various GPUs, the edge computing hardware product Aethir Edge provides computing and rendering support for the Aethir network.

Cooperation with DePIN projects such as IO.NET has enhanced the competitiveness of Aethir network computing and rendering.

On the computing power demand side:

The Web3 mobile phone Aphone is integrated into the Aethir network. In addition to the advantages of Web3 application market, cloud gaming experience, Web3 mining, Dapp rapid deployment and testing, it also has functions such as GPS shielding and one-click IP change, providing support for the Aethir service market.

In short, Aethir is not just about mining, but also a new decentralized computing and rendering solution. Through blockchain, edge computing, hardware and other technologies, the comprehensive layout of AI and cloud gaming strategies can not only promote the development of these two potential industries, but also have the opportunity to gain broad application prospects in the explosion of AI and cloud gaming.