Cryptocurrencies and NFTs were last year’s hottest trends across the board, probably including all tech. It is also truly remarkable how fast innovation is occurring in the industry.
There has already been a shift away from NFTs being merely speculative digital assets purchased and held onto in hopes of seeing their value increase dramatically over time. As for 2021, renting could take its place this year if ownership was a dominant factor in the economy.
It’s not just speculation, but there are clear indicators that NFT renting could make the entire sector more accessible to the masses, ultimately propelling it to new heights.
Rental/lending is likely to become the defining future NFT consumption model due to platforms such as Renft.io. Those details will follow later, but let’s kick things off by reviewing some basics.
What Is NFT Renting & Lending, and What Are the Benefits?
The name “NFT renting and lending” means pretty much what it says. It lets individuals use or have a limited experience with a particular NFT without actually owning it. The rental NFT can range from in-game assets to collectibles to art to financial NFTs and can be anything you desire.
A smart electronic contract governs the whole rental process between a lender and a borrower, decentralized and transparent. There are two types of collateralized loans: collateralized loans featuring collateral and collateral-less loans without collateral.
NFT rental has several benefits. Rentals in the NFT industry lower the entry barriers for people interested in the asset class at its simplest level. Since the NFT industry has created such a buzz worldwide, it is no wonder that more and more people are beginning to consider this asset class or even give it a shot.
Despite this, if recent trends are believed, NFTs can be quite pricey at times – especially those that generate a lot of hype. By offering NFT rentals, a broader audience of individuals who would otherwise be unable to afford NFTs may be able to access these expensive devices.
On a conceptual level, it’s a lot like renting a luxury car for the weekend. After renting an NFT, the renter may decide to purchase it to have permanent ownership permanently.
How Does It Benefit Owners of NFTs?
A platform such as Renft.io allows the owners of NFTs to lend their assets securely and transparently without worrying that they will be compromised. It is perhaps the safest and easiest way to make a steady passive income with your NFT stash.
These platforms allow for collateral-less NFT rentals, guaranteeing that NFT owners’ initial assets are always secure within smart contracts. Moreover, the borrower never actually owns the assets.
The metaverse is on its way as the next big thing in decentralized technology – just as Defi and NFT did in 2020 and 2021, respectively. The metaverse will not undermine the two previous crypto phenomena, i.e., the Defi or NFT boom.
Indeed, there are both logical and factual reasons to think that NFTs – NFT rentals in particular – will contribute to the popularity of the metaverse.