Project name: Io.net
Project Type: DePin - Artificial Intelligence (AI)
Token symbol: $IO
Cryptocurrency Ranking: N/A
Market cap: N/A
Fully diluted market capitalization (FDV): N/A
Circulating supply: N/A
Maximum supply: N/A
opening words
In the digital age, computing power has become key to technological advancement and defines the ability of a computer to perform operations through its memory, processor speed, and number of processors. This capability determines how efficiently the device performs tasks and its ability to handle multiple processes, thus affecting performance and cost. With the rise of artificial intelligence (AI) and deep learning models, demand for accelerated computing power such as GPUs has surged, leading to a global shortage.
The central processing unit (CPU), often considered the "brain" of a computer, and the graphics processing unit (GPU) play a crucial role in determining a device's computing power. A more powerful CPU can handle more operations per second, while a GPU increases the CPU's computing power by processing parallel tasks more efficiently.
Source: io.net
In response to this growing demand, Io.net has come up with an innovative solution: building the world's largest AI computing cloud by leveraging underutilized resources in data centers, cryptocurrency mining farms, and consumer GPUs. This strategy promises to deliver virtually unlimited computing power at a fraction of the cost of traditional methods, addressing the critical gap between rapidly growing demand for computing resources and limited supply. Io.net's approach not only attempts to alleviate the current resource shortage problem, but also supports the continued development of AI technology and ensures the continuous advancement of digital capabilities.
Project overview
io.net is committed to revolutionizing the field of cloud computing through its decentralized GPU network designed for machine learning. By building the world's largest AI computing cloud, Io.net provides scalable, easily accessible and cost-effective computing capabilities, challenging the limitations of traditional cloud services. Through partnerships with entities such as Filecoin and Render, as well as the upcoming IO token, Io.net enables AI/ML engineers to easily scale their projects across a vast network of GPUs.
The platform supports key AI development tasks such as batch inference, parallel training, and reinforcement learning, and is optimized for Python workloads. With the introduction of IO tokens, IO.net is moving towards a fully operational, cost-effective decentralized network. Leveraging DePIN technology, it can meet the needs of a wide range of GPU-dependent applications, providing a flexible, user-controllable computing environment. io.net is setting new standards for decentralized cloud computing and leading the wave of innovation in this field.
io.net features
IO Cloud
IOCloud aims to simplify the deployment and management of decentralized GPU clusters, providing machine learning engineers and developers with a scalable and flexible platform for accessing GPU resources without requiring large hardware investments. The platform offers a similar experience to traditional cloud services but with the added benefits of a decentralized network.
Highlights:
● Scalability and cost-effectiveness: Committed to becoming the most cost-effective GPU cloud platform, it is expected to reduce AI/ML project costs to 90%.
● Integration with IO SDK: Improve the performance of AI projects through seamless integration and build a unified high-performance environment.
● Global coverage: Using a method similar to CDN, GPU resources are distributed globally to optimize machine learning services and inference.
● Support RAY framework: Use RAY distributed computing framework for scalable Python application development.
● Exclusive feature: Provides private access to the OpenAI ChatGPT plug-in, simplifying the deployment of training clusters.
● Crypto Mining Innovation: Aims to bring revolutionary innovation to the crypto mining industry by supporting the ML and AI ecosystem.
IO Worker
IO Worker is designed to optimize user provisioning operations in WebApps, including user account management, real-time activity monitoring, temperature and power consumption tracking, installation support, wallet management, security assessment, and profitability analysis, among other features. It promotes a more cost-effective and smooth AI learning process by bridging the gap between the demand for AI processing power and the supply of unused computing resources.
Highlights include:
● Worker homepage: Provides a dashboard for real-time monitoring of connected devices, and supports functions such as deleting and renaming devices.
● Device details page: Displays a comprehensive analysis of the device, including traffic, connection status, and job history.
● Income and rewards page: Track income and job history. Transaction details can be checked on SOLSCAN.
● New device page: Simplifies the device connection process and supports the quick and easy integration of new devices. Io.net architecture and technology analysis
IO browser
IO Browser is designed as a comprehensive platform that aims to provide users with in-depth insights into the workings of the io.net network, similar to how Blockchain Browser provides transparency for blockchain transactions. Its main goal is to enable users to monitor, analyze and understand the details of the GPU Cloud, ensuring complete visibility into network activity, statistics and transactions, while protecting the privacy of sensitive information.
Highlights include:
● Browser homepage: Provides insights into supply, verified vendors, active hardware volumes, and real-time market pricing.
● Clusters page: Displays public information about clusters deployed in the network, as well as real-time metrics and subscription details.
● Devices page: Displays public details of devices connected to the network, providing real-time data and transaction tracking.
● Real-time Clusters monitoring: Provides instant insights into Clusters status, health, and performance to ensure users get the latest information.
IoT architecture and technology
IO-SDK: core technology engine
As a branch of Ray, IO-SDK forms the cornerstone of IO.NET functionality. It supports parallel execution of tasks and processing of multi-language environments. Its high compatibility with mainstream machine learning (ML) frameworks enables IO.NET to flexibly and efficiently meet the needs of Diverse computing needs. This technical configuration, supplemented by a set of finely defined technical systems, ensures that the IO.NET platform can not only meet current needs but also have the adaptability for future development.
Based on this, Io.net adopts a multi-layer architecture design, including:
● User interface layer: Provides users with a visual front-end interface, including the public website, customer area and GPU supplier area, aiming to provide an intuitive and friendly user experience.
● Security layer: ensures the integrity and security of the system, integrating network protection, user authentication, activity log recording and other mechanisms.
● API layer: As a communication hub for websites, suppliers and internal management, it facilitates data exchange and execution of various operations.
● Backend layer: It forms the core of the system and is responsible for handling operational tasks such as cluster/GPU management, customer interaction and automatic expansion.
● Database layer: Responsible for data storage and management, the main storage is responsible for structured data, and the cache is used for temporary data processing.
● Task layer: manages asynchronous communication and task execution to ensure the efficiency of data processing and transfer.
● Infrastructure layer: forms the basis of the system, including GPU resource pools, orchestration tools and execution/ML task processing, and is equipped with powerful monitoring solutions.
IO tunnel technology (IO Tunnels)
IO Tunnels enable engineers to bypass firewalls and NAT by establishing a secure connection from the client to the remote server, enabling remote access without complex configuration.
Workflow: The IO worker first establishes a connection with the intermediate server (i.e. io.net server). Subsequently, the io.net server listens for connection requests from IO worker and engineer machines and implements data exchange through reverse tunneling technology.
Source:io.net
Application in io.net:
● Through the io.net server, engineers can easily connect to IO workers without facing the challenges of network configuration to achieve remote access and management.
Advantage:
● Convenience of access: Directly connect to IO workers, eliminating network obstacles.
● Security: Ensure communication security and protect data privacy.
● Scalability and flexibility: Able to efficiently manage multiple IO workers in different environments.
IO Network:
The IO network utilizes a mesh VPN architecture to provide ultra-low latency communication between antMiner nodes.
Mesh VPN network features:
● Decentralized connection: Compared with the traditional hub-and-spoke model, mesh VPN realizes direct connection between nodes, and multi-path data transmission enhances redundancy, fault tolerance and load distribution.
● Advantages: Strong resistance to node failures, good scalability, reduced latency, and optimized traffic distribution.
Benefits to io.net:
● Direct connection reduces communication delay and improves application performance.
● There is no single point of failure, ensuring that the network can continue to operate even when a single node fails.
● Enhance user privacy protection by making data tracking and analysis more difficult.
● It is easy to add new nodes without affecting network performance.
● Realize resource sharing and efficient processing between nodes.
Source:io.net
Tokenomics
$IO coin is expected to be released as the native cryptocurrency and protocol token of io.net in the second quarter of 2024. It aims to serve AI startups, developers and GPU suppliers in the IO ecosystem, providing a series of functions aimed at Efficient transactions in streamlining payment processes, rewarding contributions, and facilitating computing tasks.
For AI startups and developers:
● Cluster payment: IO coins simplify the payment process for cluster deployment and computing tasks.
● Model inference gateway: Each model inference requires micro-transactions through IO coins.
● IOSD points: A utility token pegged to the US dollar, generated by burning IO coins and used for network transaction fees.
To suppliers:
● GPU rewards: Provide rewards for GPU contributions, including payment for rental time and incentives to use idle time to host model inference on the network.
Io.net uses IO and the USD-pegged IOSD dual-token system to ensure stable transaction costs. The generation of IOSD is completed by burning IO coins, and this process is controlled by net emissions to maintain supply balance.
Token Economics and Governance:
● Burning and minting economics: generate $IOSD by burning $IO, maintain a monthly static supply of $IO, and adjust it according to network usage.
● Net emission mechanism: Adjust the minting amount of IO coins based on IOSD burning so that the protocol can continue to provide $IO rewards.
● Governance mechanism: $IO coins play the role of governance tokens, and currency holders influence important decisions of the network through staking, covering aspects such as rate setting and the introduction of new features.
Overview of goals and design principles:
● io.net aims to connect global GPU resources, support artificial intelligence (AI) and machine learning (ML) computing tasks, and promote the growth and balanced development of the network through native asset incentive mechanisms.
● Distribute rewards to GPU vendors and provide AI engineers with loyalty points for their continued activity on the network.
● Allow token holders to vote on key network decisions and promote the implementation of a decentralized governance structure.
● Enable IO coin holders to pledge investments to node operators or users to obtain their reward share.
● A 5% fee will be levied in the initial stage of the network. This fee is used for the destruction of IO coins or to provide USD incentives, aiming to promote the expansion of the network and enhance user participation.
Competitive product analysis
In the field of Web3, many computing application markets are emerging, including Akash, Render, Nosana, Clore.ai, Inferx, Aioz, Fluence Labs and GPU.NET, among others. Despite the fierce competition in the market, Io.net has quickly won the attention of the industry with the $30 million it raised in Series A financing from star institutions such as Hack VC, Solana Labs and cryptocurrency trading platform OKX. Its current valuation has reached $1 billion. In the field of DePIN, Io.net stands out with its leading clustering technology. This innovative feature allows Io.net to unite multiple computers into a powerful supercomputer. It is currently the only service that can build decentralized clusters at scale, providing a key advantage for the development of complex AI solutions.
Origin: Suyo on X
In 2023, Io.net received important recognition at the Inventions Asia Awards, standing out from more than 110 Asian projects. Since the beginning of 2024, Io.net has shown significant growth and engagement, with a waitlist of over 100,000 GPUs, over 14,000 hours of compute services provided, over 20,000 GPUs registered on the network, and over 650 clusters successfully built .
It is worth noting that although platforms such as Io.net and Akash are both committed to reforming traditional cloud computing in a decentralized manner, they each focus on different industry market segments. Akash Network provides a broad marketplace of cloud resources using container technology, while Io.net focuses on providing high-performance GPU computing services required for AI and machine learning, with unique clustering capabilities.
In addition, the Render Network Foundation promised to allocate 300K RNDR from its total 1.14M RNDR to new GPU node operators, with Io.net as the first partner.
Bullish fundamentals
● Io.net has established strong partnerships with Render Network and Solana, which was chosen as ideal for the DePIN project due to its high throughput and low fees, as reflected in the Messari 2024 report. It has also partnered with Filecoin to open up new revenue avenues for decentralized storage providers while enhancing AI applications. Prior to this partnership, Io.net had received hardware donations from 1,500 Filecoin members.
● Team members include Angela Yi, a Harvard alumnus and co-founder of Filecoin project consulting company, and Tory Green, chief operating officer with more than 20 years of experience in venture capital and executive positions.
● Io.net is expected to become an important force in the DePIN field and is considered one of the most anticipated project launches in the first quarter.
● It is the only project that can aggregate GPU resources from all over the world into a unified distributed cluster to provide users with instant access services.
● As the value of computing resources increases day by day, Io.net aims to reduce the cost of leasing GPU/CPU power, which is critical for the scale of AI and ML. Demand for computing power is growing faster than supply, demonstrating the growing gap between demand and supply.
● It is expected that by 2030, the demand for computing resources, especially for model training, will become a huge market, possibly accounting for 1% of US GDP.
Bearish fundamentals
● The decentralized computing market is becoming increasingly competitive, with mature and emerging projects such as Akash Network continuing to enter the market. Intense competition may affect Io.net's ability to retain users.
● There are significant technical challenges in creating and managing decentralized clusters at scale.
● While interest in decentralized computing solutions continues to grow, widespread adoption is still in its early stages. Slower-than-expected adoption by AI startups, developers and GPU vendors could limit growth.
● The risk of legal changes in cryptocurrencies and decentralized networks and the use of the $IOSD stablecoin may attract regulatory attention.
● A dual-token system involving $IO and $IOSD may be too complex for users.
Conclusion
io.net is preparing to shine in the potential AI computing market. Behind it is not only a technically proficient team, but also strong support from well-known entities such as Multicoin Capital, Solana Ventures, OKX Ventures, Aptos Labs, Delphi Digital, etc. Given the current situation and its upcoming token issuance, we think this is a project worth keeping a close eye on, but investors are always cautioned to proceed with caution.
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