NFT rental? The layout is open

We have been talking about NFT technology and industry changes, and new characters/brands/enterprises enter the NFT industry every day.

NFT rental? The layout is open

Karissa Bell, a senior editor on the well-known electronic technology blog Engadget, said on Twitter: Mark Zuckerberg is entering the field of NFTs and is working hard to introduce NFTs to Instagram in the short term, where users can independently cast their own NFTs.

NFT rental? The layout is open

Coinbase NFT announced yesterday that it has contacted more than 100 creators. Maybe we can see its online NFT products soon~

At a time when new products are springing up, the NFT works that have swept the market have gone through a big wave, and the value of the remaining works has risen. According to the Nansen NFT-500 Index, the price of 500 head NFTs denominated in ETH rose by 68.5% between January 1 and March 9, 2022 .

NFT rental? The layout is open

For example, according to NFTGO platform statistics, as of writing, the 24-hour transaction volume of BAYC (Boring Ape) series of NFTs exceeded US$4.33 million , an increase of 48.55% . The floor price of this series of NFTs is 92 ETH , an increase of 5.03% in 24 hours .

NFT rental? The layout is open

Although the trading market is so hot, the fact is that most NFTs have fallen into “sleeping” – according to the statistics of the NFTGO platform, the total number of NFT holders exceeds 2 million , but the recent average daily transaction number is only about 40,000 .

Where is the problem?

NFTs are difficult to monetize

In terms of functions, what additional value can a PFP bring besides collections and avatars? Not to mention the high price of NFT, it may not be worth it for the average person to spend money to buy an avatar that can only be collected (not necessarily sold??‍♀).

To put it bluntly, for most of the existing NFTs, its function is more like a permanent collection; or the price is too high, and it is difficult to quickly realize it.

In this regard, the witty Web3 developers have taken a different approach, and the EIP-2615 NFT rental program has been launched!

EIP-2615 Simple Logic

In order to realize NFT leasing, there is a problem that must be solved – how to keep the ownership of NFT in the hands of the lessor while transferring the right to use NFT.

Therefore, the EIP-2615 protocol was proposed. The ERC-2615 standard extends the original ERC-721 by definingadditional roles to support leasing and mortgage functions.

For ease of understanding, the editor will show you a simple example of the NFT leasing process.

step one

Assuming Alice wants to lend an NFT she owns, she will create a blank [tenant] role on the “lease contract”.

Step 3

Bob wants to rent this NFT, then he needs to fill out the lease request and pay the rent.

Step 3

Alice fills the [tenant] role with Bob.

After such a simple process, the NFT can be used by Bob. During this period, Alice cannot transfer the role of [tenant], protecting Bob’s usage rights . But if Bob breaches the lease agreement or the lease expires, then the contract will revoke Bob’s [tenant] role and reset him to Alice.

EIP-2615 Advantage Features

EIP-2615 makes NFT leasing possible, which mainly depends on the following functions of EIP-2615:

unsecured lease

ERC-721 cannot achieve the separation of usage rights and ownership, so to achieve trustless leases, funds must be deposited as security. EIP-2615 realizes the separation of use rights and ownership , the ownership of NFT will not be transferred, and naturally no funds are required for guarantee.

Mining the use value of NFT

In regular cash-out interactions, NFTs are usually used as collateral, which is blocked in the protocol and cannot be used by anyone. The emergence of EIP-2615 can not only realize NFT realization for holders through the leasing model, but also allow tenants to fully use NFT during the lease period.

Improve the security of enterprise management 

This separation of ownership and usage rights provides convenience and security for enterprise management, especially DAO management . For example, if a company needs to provide a new employee with the right to operate an account, it can provide the employee with an NFT as the account management certificate. EIP-2615 allows new employees to obtain the right to use the NFT, but the ownership still belongs to the company. , so as to ensure the security of the account.

Epilogue

Leasing is one of the rigid needs in human social activities, whether it is for owners to realize cash or for renters to use.Therefore, in the foreseeable future, with the development of the industry, NFT leasing will become an important part of the ecology.

Especially in GameFi and Metaverse, NFT leasing brings asset management and asset liquidity to game guilds and Metaverse real estate investors in GameFi, and these empowerments will also feed back the ecology and continue to develop towards prosperity.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nft-rental-the-layout-is-open/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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