Well, there is another way nowrenting!
NFT renting allows users to temporarily own special NFTs without buying them.
But how does NFT renting work, and how do you determine if it is right for you?
What Is NFT Renting?
NFT renting is borrowing an NFT for a set period.
This is made possible using asmart contractthat acts as an escrow and generally requires some deposit.
The NFT is to be returned to the original owner at the end of the rental period.
What’s the Point In Renting an NFT?
There are several reasons people rent NFTs.
Source of Income
For the lender, renting can serve as a source of income.
Lenders can charge a rental fee for the use of their NFTs.
The High Cost of NFTs
Many people cannot afford to buy an NFT outright.
Renting allows them to enjoy the privilege of owning the asset without making a large upfront investment.
The Lack of Storage Space
More storage space may be required to keep a purchased NFT.
Renting offers a way to enjoy the benefits of the NFT without finding storage space.
The Desire to Try Before Buying
Renting allows you to try out NFTs before buying them.
This can be helpful for investors who require additional help inchoosing an NFT to buy.
The smart contract allows for the documentation of the renting terms and conditions and other pertinent information.
These terms and conditions include returning the asset before the contract ends, providing collateral, and more.
The smart contract becomes effective when the renter and the lender accept its terms and conditions.
The NFT lending process is complete when the borrower regains possession of their collateral.
This form of NFT renting does not necessitate lenders to give up collateral.
After indicating interest, the marketplace initiates a smart contract to receive the deposit of the NFT.
After the smart contract expires, the wrapped NFT returns to the contract, where it is destroyed.
1. reNFT
The main goal ofreNFTis to facilitate the rental of NFTs.
Technically, to lend NFTs using reNFT, you will have to upload your NFT to their listings.
These listings are smart contract-enabled.
The borrower receives the collateral only after the NFT has been returned to the smart contract.
However, if the NFT is not returned, the lender may seize the collateral.
However, their smart contracts will include an expiration date to fix the rental duration.
As with many things that originated on Web3, the concept is both intriguing and tentative.
Can You Make Money with NFT Rental?
This can range between $1,000 and $10,000 (or more).
You’re borrowing a digital asset to make money from or to get into a game or otherwise.
The only difference is the tech, and NFT borrowing will only evolve and grow with time.
