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What is HDRI and how does it work?

HDRI stands for, "High Dynamic Range Image".  A HDRI image is unique because it stores both color and intensity settings. This is useful when lighting scenes using only a background image.

A HDRI background can create renders with complex dynamic lighting in a matter of seconds.

HDRI also helps to create realistic reflections. The image of the sun will reflect with more intensity than the image of some clouds.