Lending & Renting NFTs: Introduction
Welcome to the first part of our series “Renting & Lending NFTs”, in which we want to give you an introduction to the world of NFTs and rentals.
The rental industry is one of the oldest and most popular business sectors in the world. Whether it’s Airbnb, car rentals, or DVD/Game rentals from Blockbuster years ago, rental businesses can be found everywhere.
The central reason for renting & lending is a need that is satisfied by the temporary rights to use assets. If we rent a nice vacation home, we regularly have a more pleasant vacation, if we need a car but cannot or do not want to pay the high purchase price, we rent one.
The focus is always on need satisfaction which is valued differently from renter to renter. One rents a cheap scooter, the other rents a sports car, it’s all subjective.
Key elements of ordinary rentals
- Need satisfaction through an asset.
- Use of services that would be uneconomical or unaffordable to purchase.
- Different rental businesses satisfy different subjective interests. (Cars, Music, Land for Gardening)
Now let’s talk about NFT rentals!
As you know NFTs are an advancement of the existing virtual assets and can range from a piece of music to art to a ticket or a virtual property in a game — there are many different forms of NFTs.
Even though the general public has only perceived images of monkeys or other animals as NFTs, this represents only a simple, primitive form of NFTs.
Similar to physical assets these virtual assets will also develop their own economic infrastructure over the years. In addition to buying and selling, renting and lending will become a core part of this economic structure, as we already know it from ordinary assets. Now you might wonder why anyone would rent an NFT?
For exactly the same reasons why anyone would rent an ordinary asset.
Need satisfaction by the temporary right of use of an asset.
Someone wants to participate in a digital event or play a game, but needs to own a specific NFT for that — they simply rent the NFT for that period of time, exactly like someone would rent a bowling alley, a movie, or an expensive camera for entertainment purposes.
NFT rentals even allow individuals around the world to rent and lend virtual assets from each other — something that was previously reserved for large companies like Netflix or Spotify — a democratization of the virtual rental/subscription sector.
We hope this introduction was able to give you a small overview and you now understand why NFT rentals are an essential economic element of tomorrow’s virtual economy.
Feel free to reach out if you want to learn more about NFT rentals and how you can integrate our rental solution into your project!
reNFT is a multi-chain NFT rental protocol and platform that can be whitelabel integrated into any project to enable collateral-free in-house renting, lending and scholarship automation!
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