Quick question, if you are in an immediate need of a car for traveling in a strange country, what would be the best option for you? Considering the cost-effectiveness of actually buying one only for temporary use, most of you would probably just go straight renting one. Reasonable choice, indeed. And this could also be the case with the increasingly more popular and even pricier NFTs. Let’s see why and how.
What’s the Beauty in NFT Rental?
Just like the scenario of renting a car, the rental of NFT would be necessary when someone wishes to temporarily utilize or experience a particular NFT that they neither own nor possess. This need mainly derives from the utility that comes along with the NFT, which is beneficial for both the NFT owners and renters. For the former, NFT rental provides them with a new way to make profits out of their NFTs that might otherwise be left wasted in their wallet. As for the latter, NFT rental opens up a channel for them to become a part of the greater NFT community and make use of the NFT that would elsewise be too expensive for them to afford.
What’s more, people always prefer having the choice to remain flexible. When buying an NFT with a higher price, it is pretty normal to feel hesitant as there is a chance that it may lose its value or become obsolete after the purchase. With NFT rental, there is no need to worry about this, for the renters can let go of the NFT whenever they feel the value is going down. Also, for those who will only need a certain NFT for a short period of time, NFT rental will do the job perfectly fine.
In addition, NFT rental will save the renters the storage space for keeping purchased NFTs while still allowing their benefits to be claimed. Even for those who intend to choose and buy an NFT for a good investment, NFT rental will provide a valuable chance for them to try out the NFT before the actual buying is pulled through. The potential of NFT rental could be massive, covering areas of digital arts, in-game assets, and many more, satisfying a wide range of needs in the Web3 world.
How Does it Work?
The rental of NFTs necessitates a platform on which owners can list their NFTs on a marketplace and potential renters can view the details and initiate a borrowing process. After an agreement is reached upon the rental duration, daily rate, the amount of collateral (if any), all details will be included in and enforced by a smart contract, into which NFTs will be temporarily deposited before the transaction is finalized and verified on the chain.
For a collateral NFT renting, the renter will have to pay a deposit collateral (often greater in value than the rented NFT), along with the total rental fee and any necessary gas fee or service charges, in order to protect the lender’s interests. If the renter violates the contract, the deposit collateral will be directly compensated to the lender. If not, it will be returned upon the expiration of the contract as the NFT is sent back to its original owner at the same time.
For a non-collateral NFT renting, however, neither a collateral nor the original NFT will be taken from their owners. Instead, a wrapped NFT with all the same characteristics of the original NFT will be minted and lent to the renter. When the rental period ends, the wrapped NFT will be burned and rendered unusable.
Rangers Protocol's Practice
Rental protocols like Rentero make it possible for users to access the maximized utility of NFTs. It allows NFT owners to make earnings by renting out their NFT assets, lowers the investment threshold for newcomers, and solves the problem of high-end NFT usage, which is crucial for the development of blockchain games and more Web3 applications.
By accomplishing all these, Rangers Protocol is preparing the ground for the integration of more NFT projects and getting better at servicing massive gaming applications. In the foreseeable future, NFTs are expected to go beyond the blockchain industry and exert a greater impact on more industries that are closely related to our lives. NFT rental will enable more people to participate in the Web3 economy regardless of whether they are financially capable of buying them or not.
About Rangers Protocol
Rangers Protocol is the backbone of a Web3 engine for creating immersive Web3 applications. It minimizes the development difficulty for Web3 developers and maximizes the user experience of its Web3 applications. Rangers Protocol provides comprehensive infrastructures for efficient complex-app development, successful cross-chain and mass distribution, diverse in-app NFT and DeFi features, and more. Through its full EVM compatibility, strategic industry partnerships, and curated all-in-one IDE, Rangers Protocol supports AAA and indie developers to succeed in the Web3 world.