NFTs were undoubtedly the trendiest innovation in technology last year, not just in the crypto industry but across the board. Like a ripple effect, the industry is also experiencing staggering growth in innovation pace and wide-scale adoption.
Even though many people think of blockchain-based assets as speculative assets, NFTs have already developed into much more than merely JPEGs that users would acquire and hang onto in the hopes that their value would rise sharply over time. People are now building business models in the NFT space by trading and renting digital assets to create a revenue stream.
If 2021 is considered the year when the NFT ownership economy took flight, then the current year may very well be positioning itself as the year for the boom of NFT renting. The idea of NFT rental services like Double Protocol was born out of the real-world need to leverage on creating value through underutilized assets.
Double Protocol is an innovative NFT rental platform based on ERC-4907 that enables the lending and renting of in-game and in-metaverse NFTs. Similar to Airbnb, Double NFT rental services involve a person who owns a particular NFT, leasing it out to another person who needs the same NFT for a limited amount of time.
As NFT assets become more pricey over time, it creates a divide between the “‘haves’, and the ‘have not’”. Double Protocol plays a crucial role in lowering the barrier of entry by making this asset class more accessible to the general public by facilitating rental services for users.
How Double Protocol is Shaping The NFT Space — Key Use Cases
As a first-mover in the NFT rental space, Double Protocol is fully committed to bringing a seamless rental experience to users of a wide range of NFT collections. The team behind Double Protocol is also behind the revolutionary ERC-4907 proposal that was built for NFT rental protocols. Here is a summary of some of the most notable use cases that Double Protocol is delivering to NFT users across the industry.
Lend and Rent In-Game Assets: In traditional video games, in-game items were never actually valuable outside of the game itself. With decentralized gaming utilizing the strength of NFTs, that isn't the case anymore.
NFTs provide users the potential to bring in-game items to an NFT marketplace and sell them to other players or collectors. NFT rental platforms like Double Protocol give these users an even more useful choice. NFT owners may easily lease their assets through Double NFT Rental services and earn passive revenue. Likewise, through rentals, borrowers would have access to a specific NFT-only game for the time they want to utilize it.
NFT rental services have ushered players into an era where they may earn a fortune by renting out in-game items, virtual property, or even digital wearables for game characters. With this use case, even the loudest critics will be unable to refer to gaming as a time waster and will instead begin to view it as a new source of revenue.
Rent Metaverse Land: Now that the Metaverse is here, every major corporation is attempting to incorporate it into their business model — be it the industry leader in social media or gaming technologies.
The metaverse is a component of the next iteration of the internet, and according to many experts, this technology will eliminate the temporal gap between the actual world and the virtual world. In comparison to real life, it is projected that people will spend more time in the Metaverse. They will visit the workplace, participate in activities, and even communicate with others in the Metaverse.
For all types of real estate investors, investing in the metaverse may very well be a wise choice. Virtual real estate rental presents an opportunity for investors to start generating cash right away, as opposed to purchasing it and holding onto it in the hopes that its value would increase.
There are a lot of companies seeking a means to enter their preferred metaverse platform but who may not be ready to completely invest in buying these virtual properties. This is where metaverse landlords can make a fortune by leveraging Double Protocol to rent out lands to such individuals and companies.
A well-structured metaverse land might be made profitable in several ways. Landowners or land users could rent out vacant land, structures, or billboard space. Unavoidably, the renting of metaverse land is establishing itself as one of the significant use cases being offered by NFT rentals services.
Lend or Rent a Web3 Domain Name: Crucial in establishing a web3 user identity, Double Protocol has enabled the rental of Ethereum Name Service (ENS) domain name. Users who preferred a web3 username that has already been registered could connect with owners of such username through Double Protocol and rent the domain name for a specific period.
Brace Up for More Impact
The low barrier to entry brought by NFT rental has made NFT assets more accessible to all, not just to big players. There are undoubtedly other NFT Rental use cases that may not have been included in this article. However, it is fascinating to watch NFT rentals thrive. Its vital use cases will be crucial in drawing major players to the market.
Although NFT rental services are still at their initial adoption phase, however, the sector is poised to witness further growth in the user base of people willing to leverage this income stream. Through rentals of digital lands and in-game items and other NFT-based assets, Double Protocol will play a key role in unfreezing the liquidity of the rising digital economy the world is currently embracing.
