EMC, Recognized as Layer 1 for AI and Decentralized GPU

As interest in artificial intelligence (AI) continues to rise, there is a growing trend of cryptocurrency projects attempting to combine AI and blockchain.

Among AI-related cryptocurrency projects, the most representative type is the decentralized graphics processing unit (GPU) project that leases GPUs. Decentralized GPUs are a type of decentralized physical infrastructure network (DePIN), which involves uploading unused computing power to the blockchain and renting it out to developers or startups that need computing power.

EdgeMatrixChain (EMC) is also one of the DePIN projects that operate GPU rental services. However, it is evaluated as being differentiated from other GPU rental DePINs by enabling DeFi and creative platform provision using Layer 1 blockchain. In August, EMC attracted a total investment of $20 million from venture capitalists such as P2 Ventures and Amber Group for the development of Layer 1 blockchain.

Why is Decentralized GPU Necessary?

Decentralized GPU projects have emerged as a solution to solve the GPU acquisition problem, which is currently the most important issue in the AI industry.

Since the emergence of Open AI's Chat GPT, everyone has jumped into AI development, causing a surge in GPU demand while supply remains severely lacking. As a result, high-performance GPUs used in AI development are currently priced at the level of a car. While big tech companies like Meta and Microsoft have no major issues purchasing expensive GPUs, startups and individual developers face difficulties in terms of cost.

The demand for GPUs can be seen in Nvidia's third-quarter report, which virtually monopolizes the GPU market. Nvidia reported that its revenue and net profit surged by 94% and 106% year-on-year, respectively, to $33.16 billion and $19.39 billion in the third quarter. This greatly exceeded market expectations.

Decentralized GPU DePINs are becoming an alternative that can significantly reduce the cost of GPU computing resources, solving these problems. Binance highlighted in its first-half report this year that "as interest in AI grows, the cost of computing resources such as GPUs has increased," and "decentralized GPU DePINs have emerged as a cost-effective alternative."

There is also hidden demand for decentralized GPUs. Chinese AI developers sanctioned by the United States are an example. According to the Wall Street Journal, Chinese AI developers have turned to decentralized GPUs as an alternative after being blocked by Amazon Web Services. The media cited EMC as an example, evaluating that decentralized GPUs, with features such as anonymity through smart contracts, are becoming an attractive option for Chinese AI developers.

EMC, A One-Stop Platform for AI

As explained earlier, EMC is a project that leases the computing power of GPUs. To this end, EMC has currently secured 274 nodes on its blockchain and registered over 3,000 GPUs. The GPUs provided by EMC include Nvidia A100, GeForce RTX 4090, and GeForce RTX 3090.

Among them, the cluster 'SuperPOD' made by assembling 1,024 'Nvidia H100' GPUs is considered EMC's strength. Previously, EMC participated in the 'Singapore Token 2049' conference and showcased a real-time demo of SuperPOD.

EMC not only leases GPUs but also provides users with various AI-related services. For example, it offers a platform business that allows users to develop and contentize AI more easily. EMC's AI platform, EMC HUB, includes ▲ AI agent Jarvis Bot that can generate various content, ▲ creative transaction application OmniMuse, and ▲ 3D content generation application ZoZoWorld.

Additionally, EMC helps build networks suitable for AI use. Specifically, it has implemented low latency and high transaction throughput in the network by introducing technologies such as smart routing and data caching. EMC stated, "Our goal is to become a platform that encompasses almost everything in the AI field," and "developers will be able to smoothly test and launch their AI models on the EMC network."

Furthermore, EMC also provides DeFi services using GPUs. Currently, anyone can purchase the computing power of Nvidia H100 GPUs in the form of tokens within EMC, and by staking them through EMC's DeFi, they can earn additional income of about 2.7-7.1% annually depending on the period. Currently, about 2.6 million EMC tokens are staked in this DeFi service.

According to CoinMarketCap, EMC tokens are trading at $0.079 as of 10 a.m. on the 6th, down 4.91% from the previous day. The circulating EMC tokens are about 30 million, accounting for 3% of the total supply (about 1 billion). The market capitalization is approximately $2.37 million.

Meanwhile, EMC is earning about $15 million annually. Although the business scale is not yet large, the outlook for decentralized GPU projects is generally positive. Data analytics firm Nansen, in a report published with MetaStreet, predicted that "considering the DeFi income, tokenomics, and GPU rental revenue of GPU rental services, the total revenue of these services could surge by at least 30% to a maximum of 200%."