NFT Renting: The shortest way to NFTverse
In the 8 years since its birth, NFTs have exploded, with trading volumes exceeding 40 billion dollars. With the sky-high value of NFTs, we can see that to own an NFT, the cost is not small. This inadvertently becomes a barrier to NFT reaching more people. Fortunately, the industry has produced a type of finance known as NFT Rental.
NFT now not only makes digital assets publicly tradable but also allows users to rent them. With NFT renting, users can experience and use the services that NFT provides without having to buy them outright. This reduces the distance between expensive NFTs and users, bringing users closer to the NFTverse.
What is NFT Renting?
Conceptually, NFT renting is as simple as its name suggests. Individuals who do not own a particular NFT, but would either like to use it or experience it for a limited time, may go out to a relevant platform that supports NFT rentals, and rent it.
There are several types of NFT rental available today, but the most common is “Collateralized Rental.” With this model, the renter must put down collateral that is greater than the NFT value they wish to rent, as well as a rental fee. The smart contract handles the entire rental process and terms, such as the lease term and collateral amount. After completing the rental process, the renter can claim the NFT and enjoy all of its amenities.
Who needs to rent NFT?
Gamer: Perhaps, Gamers are the ones who benefit the most from NFT leasing. While the number of blockchain game developers keeps on growing, many people who own NFT-type game items but don’t have time to play, or simply have a few unused NFTs, can still make money by renting these NFTs. The tenant will receive all of the services that the NFT they rent provides, including game experience, receiving tokens, NFT items, and so on.
Social media users, and influencers: When Twitter launched the NFT confirmation feature, many people started using NFT as their avatar. Owning a valuable NFT makes their profile impressive, gaining respect from the community. NFT coins increase their credibility in the Crypto community as well as NFT.
Museums, Exhibitions: NFT exhibitions have taken place all over the world, from famous museums like DREAM Hollywood to Bondi Beach Gallery in Sydney. The NFT rental service will help galleries that want to legally display this original digital artwork avoid conflicts. This makes it easier for museums to exhibit NFT pieces of art and brings them closer to the general population.
We can see how the appearance of the rental NFT marketplace has brought users closer to NFT. From being able to easily experience art forms to great games to impressing the NFT community with an NFT photo. The emergence of the NFT rental model completely changed the NFT game. It brings NFT to more users, at a lower cost, and creates more opportunities for users.
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Disclaimer: The article should not be taken as, and is not intended to provide, any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such.