Hey @HaZse, apologies for the delayed reply.
Yup, the way it is currently, everything runs on our backend. The exception is Pixlet apps that you can run locally and then push the rendered output to your device via the API. However, that rendered API is still leaving your network and entering ours before going to the Tidbyt.
This is more of a software limitation than hardware. With v1, we focused on the 90% use case and it’s just much simpler to code for all the data coming from one source. If there’s enough demand for it, I’d be open to adding some sort of completely local communication. We would have to figure out what that looks like and how it works though.