In the past thousand years, mankind has developed a variety of ownership, property rights and licensing methods, most of which are applicable to physical objects. With the rise of the Internet, digital assets have increased greatly, and neither ordinary rules nor current technical attempts can safely verify the authenticity, scarcity, and ownership, thereby reducing their marketability. With the invention of blockchain technology, all these problems can be solved, thus bringing endless opportunities to the digital world.
Why it makes sense to rent an NFT?
First of all, NFT is a digital asset stored on the blockchain. Due to the countless application fields and possibilities of NFTs, the following types of NFTs have emerged.
JPEGS
The most famous and simplest type of NFT is JPEGS. Most people may have heard of it because of the high sales records achieved by artists such as Beeple or NFT projects such as CryptoPunks and Bored Ape Yacht Club. In various situations, it makes sense to rent JPEG files. For example, if a museum wants to display a certain artwork for an art exhibition, they can easily search for their favourite artwork and choose to rent it during the art exhibition without worrying about logistics and transportation damage.
As Twitter is about to integrate with NFT, people will have a lot of interest in showing JPEGs as a profile picture similar to wearing beautiful clothes or driving a stylish car in real life. Therefore, many people can rent NFTs from people who cannot participate in exclusive events for specific NFT holders, without having to pay a huge price to fully own the NFT
Game
The greater the utility of NFT, the more likely it is that someone is willing to rent it. This is why NFTs in the gaming sector may become one of the largest markets in the digital world. Game NFTs can be game assets that represent game content, such as digital fashion wearable devices, weapons, cars, and even virtual real estate in games such as sandboxes. Another example of a popular NFT game is Axie Infinity, where players can pit their in-game assets against each other and earn tokens through it.
By renting NFTs, Axie owners will be able to rent out their Axie to other players and automatically obtain their share of income in a fully automated and trustless manner, making it easier and safer for others to rent out their precious Axie. This can be applied to any game on the market that supports NFT.
Metaverse
As Facebook changes its name to Meta, even the largest digital companies are entering a new digital era, and they will support NFT. Users will be able to rent virtual advertising space and in-game billboards, making NFT leasing an important economic factor in the new era of digital marketing. We believe that over time, users will spend more and more time in virtual worlds, experiences and games.
Music
Imagine selling your music directly to fans, deciding the number of copies to be distributed, the price, and even the type of distribution. You can even add certain incentives to music buyers, such as lowering future concert prices or commodity prices, or even NFT music album holders’ first right to buy tickets.
Artists will be able to reward their most loyal fans better than ever. In this way, if you rent out a music album you bought many years ago to someone who wants to attend a concert and get an upgraded seat, you can profit from the music album you bought many years ago.
Domain name
We are seeing more and more domain names becoming NFTs. Premium domain names can be very expensive, so it makes sense to rent only one domain name for a period of time to get the best domain name to represent the company or event well. Unlike ordinary domain name providers, there is no renewal fee for an NFT domain name because it is minted as an NFT on the Ethereum blockchain, granting users full ownership and control of its content.
Tickets/Activities
Another type of NFT is tickets for events such as music festivals or concerts. Since NFT is not as easy to be copied as ordinary concert tickets, music fans no longer have to worry about being cheated and receiving fake tickets, because the blockchain technology at the bottom of NFT can always prove the authenticity.
NFT reuse
Currently, there is no other income-generating method for NFTs other than potential speculative price increases over time. Lease NFT aims to revolutionize the expanding NFT market, enabling owners to earn income from their originally obsolete assets, and enabling tenants to use various NFTs in the experience without being restricted to owning a single asset.
The lender defines the lease price, collateral, and maximum lease term. The lessee specifies the lease term, pays the collateral plus rent, and obtains a fully-custodial NFT. Simply put, the unsecured solution only needs the corresponding game support to load the rented assets.
NFT will change the way we handle digital assets and will always open the door to true ownership. They open up endless new financial markets for people, allow people to participate in them, democratize the industry, and provide creatives, collectors, gamers, artists, etc. with new ways to follow their passion.
Whether it’s transaction cards or luxury goods, everything can and will be tokenized, allowing people to obtain passive income by lending in some of the above-mentioned ways, or being able to advertise their corporate dollars to thousands of users around the world by renting virtual advertising space universe. The NFT rental market will become an indispensable part of the new digital era.
