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

The basic logic of AI+GPU DePIN is to use a large number of GPUs distributed globally to form a decentralized physical infrastructure network (DePIN) to provide computational power support for AI training and usage.

From the current development of AI products, this track has great potential. However, the challenge lies in truly building a valuable and in-demand network, as it is relatively simple for a miner to use GPU access and mine on the network.

Aethir is one of the DePIN networks that has attracted market attention. On March 20, Aethir sold 60,000 nodes in just 2 hours, with a value exceeding $92 million calculated at the price of ETH at that time.

The initial selling price of Aethir nodes was 0.1259 ETH, which rose to 1.8232 ETH in May, an increase of 14 times, with a total sales amount of $130 million.

Next, this article will delve into the application scenarios, technical implementation, and ecosystem of Aethir to explore the reasons why the project is favored by the market.

Application Scenarios and Prospects of Aethir

AI Training and Inference

Although it is no longer necessary to demonstrate the prospects of AI through data, the AI industry is still in its early stages of development and has enormous potential.

According to an article published by OpenAI in 2018, "Three factors driving AI progress: algorithm innovation, data, and computational power available for training." "From 2012 to 2018, the amount of computation used for AI training doubled every 3.4 months. Over 6 years, computational power increased by 300,000 times."

On the other hand, an AI report from CSET pointed out, "Excessive demand has driven GPU prices to double or triple the retail price. In the second quarter of 2021, the GPU shipment volume was 123 million units, with Nvidia accounting for 15.23% of the total, indicating that Nvidia sold approximately 75 million GPUs per quarter. Once manufactured, most GPUs are used for non-AI applications, such as personal computers, gaming, or cryptocurrency mining."

The conclusion is: there is a shortage of GPUs, especially for AI computing.

Computational power will limit the evolution and development of AI programs, especially for early-stage AI projects. Purchasing computational power on their own will bring significant cost pressure and economic risks to early-stage AI projects.

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

On one hand, Aethir provides decentralized computational power support for AI product training and usage, which is beneficial for the development of the AI industry. On the other hand, it provides mining opportunities for idle computational power.

This is the fundamental significance of the Aethir DePIN network—integrating GPU resources in a decentralized manner to maximize the application and value of GPU computational power.

Cloud Gaming

What is cloud gaming?

Traditional games require computing and rendering tasks to be executed on the client side. This is why many gamers spend a lot of money to buy top-notch graphics cards.

However, cloud gaming is different. The advantage of cloud gaming is that it does not require high hardware requirements on the player's client side. It can run across various devices such as Android, Apple, and PC.

This is because the computing and rendering tasks of cloud gaming are executed on cloud servers, making it easier for players on client devices. Ordinary computers, mobile phones, and other devices can play cloud games.

The GPUs on Aethir's DePIN network can serve as cloud servers to execute the computing and rendering tasks of cloud gaming.

Cloud gaming has the advantage of low entry barriers and cross-platform operation, making it a blue ocean market at present.

A report from fortunebusinessinsights shows that since 2019, the North American cloud gaming market has shown a stable growth trend and is predicted to continue. "The global cloud gaming market is expected to reach $57.6 billion in 2023 and is projected to grow to $1266.2 billion by 2032, with a compound annual growth rate of 37.9% during the forecast period."

Virtual Reality and Internet of Things

In addition to AI and gaming, AR (Augmented Reality)/VR (Virtual Reality)/MR (Mixed Reality)/XR (Extended Reality) products also require large-scale computational power, and Aethir can also serve as a computational network for such products.

As a decentralized physical infrastructure network, DePIN itself belongs to the Internet of Things. In practical applications, various IoT devices such as sensors, smartphones, cars, home appliances, etc., have a demand for distributed computational power from Aethir when needed.

Technical Implementation of Aethir

DePIN Network

As a DePIN network, Aethir consists of three types of nodes (i.e., miners): containers, indexers, and checkers, which cooperate and supervise each other, forming a stable and secure decentralized technical architecture.

Containers

Responsible for real-time execution of users' remote computing and rendering tasks. The core hardware of containers is GPUs, which provide different computational power for AI program operations and cloud gaming rendering.

Indexers

Responsible for indexing and matching suitable containers to execute tasks based on user requirements. When matching, it comprehensively considers factors such as demand, container status, service quality, network latency, and costs to ensure that users obtain efficient and smooth computing and rendering experiences, while maximizing the utilization of container nodes globally.

Checkers

Responsible for evaluating the work quality of containers.

Checkers randomly inspect container nodes during registration, standby, and task execution. Additionally, checkers monitor the performance of container nodes, including computational power, response time, network latency, and submit the information to the indexer for matching work. If a checker finds that the service quality of a container node does not meet the standard, it will upload the information to the Aethir network, and the blockchain protocol will impose penalties on the container node, including reducing its priority and decreasing the probability of task allocation.

Currently, Aethir has launched a test network version of the "Checker Owner Portal" and "Checker Client" GUI/CLI software. The "Checker Owner Portal" is used for checker node owners to manage nodes, view, and claim rewards. The "Checker Client" is used to run checker nodes.

Containers ensure the functional guarantee of meeting user needs in the Aethir network.

Indexers ensure the efficiency guarantee of the Aethir network.

Checkers ensure the security guarantee of the Aethir network.

Workflow of the Aethir Network

Application Integration: After integrating the aforementioned four major demand scenarios, developers need to stake $ATH tokens and integrate with the Aethir platform.

Requesting Computation: After integration, various applications in use and AI applications during training send requests to the Aethir network.

Task Matching: The indexer accepts requests and selects suitable containers to execute tasks. The checker evaluates the performance of the containers.

After successfully completing their respective tasks, containers, indexers, and checkers can receive token rewards. Of course, miners need to stake $ATH tokens and purchase the corresponding NFTs for nodes to be eligible for mining.

❚Proof of Rendering (POR) Consensus Algorithm

The consensus algorithm is crucial for decentralizing the network. As a DePIN network that executes computing and rendering tasks, Aethir uses the POR consensus algorithm, which stands for Proof of Rendering.

Proof of Rendering involves comprehensive verification of transactions, token staking, and work frequency. Every 15 minutes, the Aethir network randomly selects some nodes to perform verification transactions to assess the computational and rendering capabilities of the nodes. Token staking by nodes essentially represents their credit commitment, with a higher stake indicating a lower probability of node default or malicious behavior, and therefore higher credibility. The lower the frequency of a node being selected, the higher its probability of being chosen to execute tasks (while also considering the node's performance in matching user demands). This design ensures fairness.

Rendering work proof is based on the execution of tasks according to user demands, including processing speed, response time, and stability, serving as proof of the node's work quality.

The basis for rewarding nodes is the proof of rendering capabilities and rendering work, incentivizing nodes to better execute computing and rendering tasks within the Aethir network.

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

Edge Computing

Edge computing is an important technology for Aethir and a core technology for Web3 applications.

What is edge computing? As mentioned earlier, cloud gaming involves executing computing and rendering tasks on cloud servers rather than on the client side. Edge computing, on the other hand, aims to delegate tasks to servers closer to the user's end.

For example, a Montreal player A of a cloud game sends a computing request while playing. The Aethir indexer selects a Montreal container node to execute A's computing task. Another player B from Tieling sends a rendering request, and after indexing, the server finds no Tieling container node, so it matches a container node in Hangzhou that is closer to fulfill B's request. This is edge computing. Servers that execute edge computing tasks are called edge servers.

As seen, as a globally distributed DePIN network, Aethir is suitable for executing edge computing.

Without edge computing, tasks being completed by distant servers and then transmitting the information back would be inefficient.

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

When executing edge computing tasks, Aethir will use algorithms to comprehensively calculate the computational capabilities, network transmission capabilities, etc., of container nodes, considering computation, caching, storage, and transmission, to provide users with high-quality edge computing services.

Aethir Edge

In terms of hardware, Aethir has launched a related product. On April 18, 2024, at the official Token 2049 event in Dubai, Aethir introduced Aethir Edge.

Aethir Edge is hardware designed for edge computing, using the Qualcomm 865 chip and integrating Aethir's distributed GPU cloud infrastructure. It can execute edge computing tasks such as AI, gaming, real-time video streaming, and also participate in Aethir network mining, receiving exclusive incentives of 23% of the total $ATH supply.

Aethir Edge can be considered a mining machine and its appearance resembles a mini PC (specific dimensions not provided).

Aethir Ecosystem Application Case: Aphone

Aethir is part of the supply-side ecosystem for Web3 applications such as AI and cloud gaming, while Aphone, as the first decentralized cloud smartphone, represents a demand-side product for Web3.

Aphone will have a built-in Web3 app store, providing a more specialized entry point for the Web3 market.

Based on the Aethir network, Aphone offers users a superior Web3 experience, including but not limited to enhanced security, convenience of web applications, faster rendering for cloud gaming, and more mining opportunities.

As an ecosystem application based on the Aethir network, Aphone has been well-received in the market, with a user base of over 36,000 to date.

Current Status of the Aethir Ecosystem

According to official data, Aethir has over 200,000 users, with nodes spanning over 20 countries and regions globally, and partnerships with over 10 game studios.

Node Ecosystem

According to BlockBeats, the number of H100 GPUs on the Aethir network has exceeded 1,000. (H100 GPU is a high-performance computing and AI accelerator launched by NVIDIA, mainly used to meet the growing demand for AI and machine learning model computations)

According to public data from Dune, Aethir has sold 74,673 checker node NFTs, including 29,544 whitelisted and 45,129 publicly sold.

Partnership Ecosystem

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

Well-Link Tech

In February 2024, Aethir established a partnership with Well-Link Tech. Well-Link Tech, also known as "蔚领时代" in Chinese, is the cloud version developer of the popular mobile game developer miHoYo.

IoTeX

In April 2024, Aethir was included in DePINscan, the DePIN data browser under IoTeX's DePIN infrastructure.

CARV Protocol

Aethir's cloud gaming technology will be embedded into CARV Play. CARV Play is a Web3 game distribution platform with 2.5 million users. Aethir provides GPU computing power for CARV Play's gamers and also reaches a user base of 2.5 million.

NodeOps

NodeOps has partnered with Aethir, allowing seamless deployment of Aethir's checker nodes based on NodeOps' node services.

KIP Protocol

In May 2024, KIP Protocol, a Web3 foundational layer for AI, established a partnership with Aethir. KIP Protocol is the 2023 Chainlink Hackathon champion project.

…

IO.NET

For example, Aethir has deep cooperation with another well-known DePIN project, IO.NET, including technical and ecological financing. The H100 GPUs of the Aethir network can automatically access the IO network while participating in mining for both Aethir and IO.NET.

It's not just about Aethir and IO.NET dual mining.

IO.NET uses virtualization technology, allowing the accessed GPUs to be shared and used by multiple virtual machines. On the other hand, orchestration technology and network layers can optimize the GPU network requirements for Aethir. In summary, IO.NET ensures more comprehensive utilization of Aethir network's GPU resources. Aethir, in turn, expands the GPU node network infrastructure for IO.NET.

The collaboration between Aethir and IO.NET enhances the efficiency of supply-side (computing and rendering nodes) services for demand-side (AI, cloud gaming, etc.) applications, further driving the development of AI, cloud gaming, and other applications.

Social Media

The ecological popularity of Aethir is evident through social media.

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

Various groups, including Aethir's node operators, crypto investors, and those interested in Web3, AI, and cloud gaming, show high activity in the community.

Token Economic Model

Token Use Cases

The token economy is the economic core of the Web3 ecosystem and serves as the decentralized incentive layer for the Aethir network and rendering business.

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

In centralized infrastructure services, centralized service providers still guarantee service quality with their brand reputation and earn fiat currency revenue. In the Aethir network, nodes access the network in a decentralized manner, stake $ATH to ensure service quality, and earn $ATH rewards.

In centralized infrastructure services, centralized service providers are responsible for system management. In the Aethir network, ecosystem participants use $ATH for ecosystem governance.

In providing decentralized computing and rendering services for AI, cloud gaming, and other applications, $ATH holds significant importance as a payment form, staking guarantee, and incentive form.

Therefore, $ATH is one of the guarantees for service quality, efficiency, and security in the Aethir network, and it is a manifestation of the decentralization of the Aethir network. The token allocation of $ATH also reflects these characteristics.

Token Allocation

In the $ATH token allocation, except for the Edge/Enterprise/IDC portion, none of the other allocations exceed 20%.

The team and advisor portion is relatively high at 17%, but it has an 18-month cliff and linear release over 36 months. Therefore, it will take a total of four and a half years from issuance to complete release.

The ecosystem incubation (8%) and DAO treasury (6.5%) portions are also controlled by the team, but together they only account for 14.5%. The ecosystem incubation portion has a 50% release, with the remainder unlocking linearly over 24 months. The DAO treasury unlocks linearly over four years.

The Edge/Enterprise/IDC portion is distributed based on the rewards table for container nodes and checker nodes. This portion is related to the actual application of Aethir. Nodes receive $ATH rewards for providing computing and rendering services to users, while AI, cloud gaming, and other applications, as well as individual artists, using Aethir's services, also need to pay or stake $ATH.

Background of the Aethir Project

Funding

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

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

Team

• Co-founder & CEO

Location: Singapore

Graduated from Princeton University in the United States, an expert in business management and brand operations. Has rich market and investment experience in the gaming and blockchain fields. Recognized for strategic management capabilities on LinkedIn.

Previously served at Riot Games, the developer of the game "League of Legends," as Global Publishing Director and COO for the China region.

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

• Co-founder & CCO — Mark Rydon

Location: Singapore

Graduated from the University of Queensland in Australia, a senior civil engineer and project management professional. Previously worked in project management at the renowned American engineering company, Berkeley Engineering.

Collaborator at the blockchain venture capital firm Flux Capital and Gaas Global, and advisor for the social gaming platform NOTA.

• CTO Kyle Okamoto

Location: United States

An experienced technical management expert in the fields of communication, IoT, and edge computing.

Graduated from the Stern School of Business at New York University, this engineer holds an MBA degree. They have worked in network operations, product management, and marketing at Verizon, the largest cable communications company in the United States. They also served as the CEO of Ericsson's IoT, automotive, and security business unit, as well as the CEO of Ericsson's edge computing platform, Edge Gravity.

They have also served as an advisor for the gamified social advertising AR platform SWAG'R, as well as a consultant for Theta Labs, a blockchain company, and a venture scout and angel investor for Alumni Ventures, a venture capital firm.

Overall, the core team of Aethir has extensive experience in both 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 aligns well with Aethir.

Conclusion

The token name for Aethir is ATH, which is quite interesting. ATH is a commonly used term in the financial field, standing for "All-Time High," indicating the historical peak. This demonstrates the unique and innovative approach of this project.

The institutional financing and node sales reflect the welcome Aethir has received from capital and the market.

Aethir's four major demand scenarios are AI, cloud gaming, virtual reality, and IoT. The project has indeed established strategic partnerships with numerous AI, gaming, and virtual reality products. These products may gradually become users of Aethir's network, integrating and staking $ATH with Aethir. Integrated users of AI, gaming, and other products can access decentralized computing and rendering services through Aethir.

Among these, AI applications have a broader development outlook and a more urgent need for Aethir's computing resources. Cloud gaming also shows potential demand for Aethir's edge computing and cloud rendering.

Data shows that GPU computing is facing a supply shortage in AI and gaming fields. As a decentralized GPU DePIN network, Aethir may have a stronger competitive edge. Currently, Aethir is comprehensively expanding into the AI and cloud gaming fields.

On the supply side of computing power:

Aethir's partner institutions and team members have high adaptability to products such as AI, cloud gaming, virtual reality, IoT, and edge computing services.

Aethir's node network is thriving globally, with over 70,000 checker nodes providing security for Aethir.

Over 1000 top-tier GPUs H100 (with the number still increasing) and a considerable number of various GPUs, the edge computing hardware product Aethir Edge, provide assurance for Aethir's computing and rendering.

Collaboration with DePIN projects like IO.NET enhances Aethir's competitiveness in computing and rendering.

On the demand side of computing power:

The Web3 mobile phone Aphone is integrated into the Aethir network, providing support for the Aethir service market, in addition to advantages such as the Web3 app market, cloud gaming experience, Web3 mining, rapid deployment and testing of Dapps, as well as features like GPS blocking and one-click IP change.

In conclusion, Aethir is not just about mining; it is a new decentralized computing and rendering solution. Through blockchain, edge computing, hardware, and other technologies, it strategically positions itself in AI and cloud gaming, which can drive the development of these two potential industries and have the opportunity for widespread application prospects in the explosion of AI and cloud gaming.

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