To assign a compatible material to a Custom Render Texture asset:
This Material updates the content of a texture according to its parameters.
You can chain Custom Render Textures together. To do this, use a Custom Render Texture as the input for a material that you have assigned to the Material or Initialization Mode > Texture in another Custom Render Texture.
You can use chained Custom Render Textures to generate a simulation with multiple steps.
Chained Custom Render Textures are dependent on each other. Unity calculates this dependency automatically so that each update happens in the right order. It does this by looking at the materials assigned to the Material and Initialization Mode > Texture properties in the Custom Render Textures inspector window.