Singapore, April 28, 2022 / PRNewswire /-Double Protocol recently announced the launch of the NFT Lending Standard EIP 4907A standard aimed at separating ownership and usage of NFTs through dual-role settings. Expecting the first EIP4907-based NFT to come online in May, Double Protocol’s EIP4907 Standard will reduce the cost of developing and integrating functional NFT rentals such as games, metaverses and membership cards. , Could revolutionize the entire NFT industry. This will bring more value to NFT holders who will increase the liquidity of their digital assets, making NFT usefulness available to everyone instead of blue chips and expensive NFTs only in the market. increase.
The rise of utility-focused NFTs
Contrary to what skeptics predicted, the early but prosperous NFT market has made a strong claim that it has never been built around mere hype and FOMO. The underlying technology and the economies that underpin it are getting stronger every day to promote and maintain real-world use cases.
At least that’s what it looks like, as more and more utility-focused NFTs are emerging, as opposed to most first-generation NFTs that were basically avatar-based. The rapid growth of Metaverse and play-to-earning NFT games has been particularly helpful in supporting the evolution and maturity of the NFT market.
A key point from this trend is that NFT ownership and use cases are likely to be on a positive track for the foreseeable future. And, as you’ve probably already noticed, the NFT Rental Marketplace has a big role to play in it.
NFT rentals-how to make NFTs accessible to the masses
If 2021 is the year when the NFT-owned economy dominated the roost, it is very likely that 2022 will be the year when NFT leasing will dominate.The signs are already there — especially with the advent of NFT rental platforms such as: Double protocol..
Ideas behind for those who are outside the loop NFT rental It’s as easy as you think. Just like renting a luxury car on the weekends without owning it, NFT rentals allow you to experience or use NFTs for a limited time without actually owning them.
Generally speaking, all kinds of NFTs, such as in-game assets, virtual real estate, digital art, financial NFTs, collectibles, etc., are in NFT marketplaces such as Double Protocol. Smart contracts enforce the terms of the rental agreement between the lender and the borrower, making the entire process transparent, decentralized and independent of third parties.
Benefits of NFT rental
There is no doubt that NFTs are skyrocketing in popularity, but cost of ownership can be a major hurdle to limit their mass adoption. yes, NFTs are really-can be really expensive — Especially when the popular ones are a lot of talk.
NFT rentals are the most practical way to avoid cost factors, as users who cannot otherwise purchase can access the most expensive NFTs.
Conversely, it also makes financial sense for users who buy NFTs as an investment (I don’t necessarily intend to use those NFTs myself). By renting NFT stashes, these users can make significant profits as a passive income.
Good so far, but with some issues along the way, the entire NFT rental process is more complicated than most users will be satisfied with. And that’s why platforms like the Double Protocol make a difference by smoothing these bumps, thereby lowering the threshold for web3 users to access GameFi and the selected metaverse through NFT rentals. This is where I intend.
How the Double Protocol aims to make NFT rentals more efficient and influential
Separating usage rights from ownership is a basic condition that must be met for NFT rentals to work smoothly. So far, one way to comply with this requirement is for an operator or controller who can perform certain actions in the NFT, but cannot transfer the asset to a third party or take full control of the asset. Is to add a role (as the owner does).
If the owner decides to allow the controller / operator access to the NFT for a limited period of time via the NFT rental platform, then two on-chain transactions must be performed. Once at the beginning and end of the period.
As NFT applications and subsequent NFT rentals continue to grow rapidly, we need to develop a framework to efficiently handle user rights management without delving into technical points. One viable way to achieve this goal is to create and apply a unified standard that facilitates collaboration between all applications.
Double Protocol Dual Role NFT Standard EIP4907
A key component that enhances the double protocol to achieve the goal of enabling NFT lending without the need for transfer of ownership (by the lender) is the dual role configuration of NFT smart contracts. To help more projects make NFTs rentable, the Double Protocol has proposed an NFT standard with a dual role configuration (EIP 4907).
By applying EIP 4907, you can easily derive user rights from the key ownership of the rental.
In addition, the dual-role standard has an expiration date. In other words, rental NFTs have an automatic expiration date. That is, the borrower’s usage rights automatically terminate at the end of the rental period, without any additional transactions on the chain.
The mechanism is as follows.
The Double Protocol expands dual role contacts to ensure that in-game assets have two roles: owner and user. When Next, create a doNFT that corresponds to the original NFT to represent the user’s rights.
When the borrower pays the rent, a doNFT is created for the borrower according to the doNFT contract.
During the lease period, the lessor has the right to various rights of use, including subleases, splits, mergers and even financial derivatives.
At the end of the rental period, the doNFT contract automatically cancels the borrower’s right to use.
The advantages of the Double Protocol dual-role standard are:
You don’t have to worry about credit risk.
The borrower does not have to pay a large amount of collateral.
Owners do not have to worry about the safety of their rental assets.
Rental terms are flexible and can be split, combined, or traded multiple times.
The ability to integrate rental contracts into third-party products and applications.
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