ERC 4907 Explained, Rentable NFTs With Expiry Date

The ERC-4907 rentable NFT standard, which is an extension of ERC-721, implements the time-limited “user” role and enables automated expiry through the “expires” function. The “expires” function will facilitate the automatic end of a usage term without the need for a second transaction. The implementation of the “expires” function is crucial to the operation of NFT rentals because it eliminates the need for NFT owners to manually revoke user rights, which is made more difficult by the simultaneous leasing of several NFT assets. As a consequence, gas prices will decrease.

On June 28, “EIP-4907” proposed by the Double Protocol NFT rental marketplace passed the final evaluation by the Ethereum development team and was given the status of “Final,” making it the 30th ERC standard.

ERC-4907 unlocks some interesting potential applications, like:

• Video game NFT rentals

• Temporary membership of a token gated club

• Temporary usage of token gated software;

• NFTs as collateral for loans.

• NFTs, which represent real-world rentable assets, (i.e., vacation homes).

What does it signify for users and why was a standard needed?

In the gaming industry, NFTs can be of immense utility. However, prohibitive prices for purchases and hyperinflation made mainstream users less accessible. The NFT rental platforms became immediately necessary as a result of the proof of asset worth and usage value, and they also had the power to influence the NFT market’s liquidity.

Separating ownership and usage rights of the NFT was necessary to guarantee a risk-free, smooth renting experience. Although there were a number of remedies, such as using collateral to shield lenders from NFT losses, these models were ineffectual due to the unequal distribution of property rights, and hefty obligatory deposits did not expand access to NFTs.

Due to its simple implementation, security, and a high degree of composability, Dual-Role, through ERC-4907, is positioned to become one of the most significant token standards, having proven itself to be the ideal design for separating the rights of the owner and user. The “user” role allows usage for a set amount of time without being given the ability to transmit the NFT. Faster innovation and expansion of the NFT ecosystem will result from the acceptance of this strategy as the norm for NFT construction.

Without the standard, integrating Double Protocol into Gamefi projects requires lengthy code. The timer feature of ERC-4907 eliminates the need for yet another on-chain transaction and does not require any programming. The cross-platform portfolio of Ethereum is made possible via ERCs. Collaboration amongst all apps will be made simpler by the introduction of ERC-4907, another uniform standard.

Double Protocol is building the infrastructure for the GameFi and Metaverse. Their goal has been to provide partners with no code license-free access by continuously improving the partner access procedure. The easy integration made possible by ERC-4907 reduces the need for coding and improves communication between all parties that implement the standard.

With Double Protocol serving as a lead-in, the adoption of the rental NFT standard heralds the start of further mainstream uses of the Ethereum network.