What is HDRI?
HDRI is short for High Dynamic Range Image. It's a special kind of image that contains much more color info than normal images (low dynamic range images). HDRI images have 32bits of color info, while LDRI only have 8 bit.
This is especially important when brightening or darkening the images. The example on the right shows what happens when a HDR and LDR image are darkened by 5 stops.
Notice the window in the HDR image, still showing all the color info while in the LDR image all this info is lost. This is because the LDR image can only contain colors from RGB=0,0,0 to RGB=255,255,255. So the white in the window from the middle picture gets clamped to pure white, while in fact it is much brighter.
HDR images can be used in 3D programs to create realistic reflections, but also to light an entire scene, if the hdri contains the 360° environment.
The two renders use the same map, but the second one uses the LDR version. Note the reflections on the teapot and the glass sphere. Also the lighting is completely different because the LDR doesn't have the correct lighting info. In the hdr version you can clearly see the light coming from the window side.
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