NFT rental — well, the name pretty much says it all. Simply defined, it is a novel method of allowing people to use or experience a certain NFT for a limited time without really owning it.
Rentable NFTs can include but are not limited to, in-game assets, collectibles, art, or even financial NFTs.
The whole leasing process is transparent and decentralized, thanks to a smart contract between the lender and the borrower. Depending on the platform utilized and the parameters agreed upon by both parties, it might be either collateralized lending or collateral-less lending.
The advantages of NFT rental are numerous. At its most basic level, the NFT rental business lowers the entrance hurdle for those interested in the asset class. This is significant because, given the amount of buzz generated by the NFT industry around the world, an increasing number of people are looking to embrace the asset class or, at the very least, give it a try.
However, if recent patterns are any indication, NFTs can be prohibitively pricey at times, particularly the popular ones that generate a lot of buzz. NFT rental has the potential to make even the most costly NFTs — or any NFT, for that matter — available to a broader population of users who would not otherwise be able to afford them. Consider renting a fancy automobile for the weekend - it works on a conceptual level in much the same manner.
Depending on their experience with a leased NFT, the renter may contemplate purchasing it in order to have permanent ownership.
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