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What is the ERC-4907 standard? Get to know the NFT rental standard

What is the ERC-4907 standard?  Get to know the NFT rental standard

After the market boom Unique tokens (NFT) popularity Rental services NFT also increased every day. for this reason NFT rental platforms They try to facilitate the entry of new users and people into the Play to Earn game space. Conditions for renting non-standard tokens also simplify for the players. In this way, on the one hand, players or renters do not need to buy NFTs permanently. On the other NFT lessors They also have a chance to earn passive income. NFT rental standard by name ERC-4907 which is considered the upgraded model of the ERC-721 standard, the process Rent NFT makes it easier. Stay with the country of blockchain.

Enhancing P2E gaming domain using NFT rental standard

Introducing the rental standard of NFTs to attract users in Play To Earn games

“Play To Earn” games are a relatively new phenomenon in both the cryptocurrency and gaming industries. However, P2E games have a high growth potential due to the combination of two popular options, namely “entertainment” and “money”. The ERC-4907 standard, which is called the NFT rental standard, is designed to strengthen and attract more users to the gamify field. Thanks to the ERC-4907 standard, NFT owners can rent their NFTs to others for a specified period of time. After this specified time, the leasing user has no access to this NFT.

What is an NFT lease?

Other token rental services (NFT Rentals) are similar to other rental services. For example, if you only need a car for a few days, renting is definitely more affordable than buying a car. The same applies to NFTs; But you have to be careful to return it on time!

Why is NFT leasing important?

Peerless tokens have a variety of uses and Rent NFT It is a good way to start working with this type of digital asset. Every day, more and more people are attracted to the NFT market, and for this reason, the NFT industry is trying to make it easier for users to enter and use Peerless Tokens.

The advantage of renting NFTs is two-way; On the other hand, the NFT owner has a way to earn money by renting out his assets. On the other hand, a user who does not have the ability to buy NFT, can easily rent the unique token he wants.

Currently, there is potential for many people to rent using blockchain technology. For example, you can rent digital artwork, virtual world plots, and in-game assets. If the use of this technology becomes common and common, the way people use many things will change and people can rent them; Therefore, NFT rental platforms need to build a robust rental marketplace so that users can use them easily.

Liquidity crisis in NFT markets is one of the challenges of this industry and various solutions have been proposed for it; One of the proposed solutions to the lack of liquidity in the police market of NFTs is to help mature, expand and strengthen NFT rental industryis

What are the methods of renting NFT?

There are currently two ways to rent Peer Tokens:

  • Secured Rent
  • Unsecured rent

one of Advantages of renting NFT is that the owner can give ownership of the asset to the lessee at the end of the lease term; But there are also risks. For example, after the end of the lease period, the lessee user must return the NFT manually, and the original owner has no control over the asset.

The new generation of blockchain technology is called ERC-4907 standard Removes the role of owner and lessee. In this new system, when the rental time ends, the privileges of the renting user will expire automatically.

Introducing the NFT rental standard: ERC-4907

NFTs rental standard, ERC-4907 standard
Source: Medium.com

Double Protocol One Police Market Rent NFT It is that the NFT rental standard, EIP4907, was also proposed by this platform. The final reviews of this standard were completed on June 28 (July 7, 1401) by the Ethereum development team, and it was registered as the 30th Ethereum ERC standard.

Standard ERC4907 A more advanced form of the ERC-721 standard allows a user to have two roles. “Owner” is the person who owns the NFT and “User” is the person who uses the NFT. The ERC-4907 standard makes it easier to rent NFTs by setting a time limit for the duration of use. The implementation of the ERC4907 standard is easily possible by adding a few lines of code. Using this model will probably cause the ecosystem to grow faster.

Solving previous NFT rental issues
Source: Medium.Com

What problems does the ERC4907 standard solve?

ERC-4907 standard, by solving some problems and challenges in previous standards, Unique token rental makes it easier. Some features of ERC4907 are:

Determining the rights of the owner and user

Since using ERC-4907 creates a coding system for two separate roles “owner” and “user”, it is easy to separate the rights of borrower and lender. This way, Peerless Token owners can control what anyone can do with their NFTs. Also, asset management is easier for owners and they can rent their assets to another user for a certain period of time after the end of the rental period of one user.

Coding for dual roles of “owner” and “user” makes NFTs easier to manage.

Time management is so easy

When a lease period ends, the user role is automatically reset. The lessee of the NFT then loses access to and right to use the asset; In the previous standards, an additional transaction had to be done for this step, which was not cost-effective in terms of gas fees and was not accurate enough. But despite the ERC-4907 standard, there is no need to do a second transaction; Because after the predetermined time expires, the “user” role will also expire automatically.

The ERC-4907 standard creates a situation where the leasing users automatically lose access and the right to use the NFT after the end of the lease period.

Compatibility of ERC-4907 standard with previous standards

By adding a set of functions to the ERC-4907 standard, it can be made compatible with the ERC-721 standard. These new functions are similar to the functions in the ERC721 standard, and because of this, it is easier for developers to adopt the new standards. Existing peerless tokens or NFTs created in the future using ERC721 can be upgraded to ERC-4907 or wrapped.

The ERC-4907 standard is an upgraded model of the ERC-721 standard that enables more functionality and applications for NFTs.

Easy integration with third parties

The ERC-4907 standard makes it easier for different applications to collaborate on the Ethereum network. In this way, the interaction of game applications, membership cards and other applications becomes easier. Also, the ERC4907 standard makes the cost of developing and renting NFT applications in these applications cheaper.

ERC-4907 makes it easier to manage NFT usage rights; Because there is no need for the permission of the issuer of the token or application. For example, you can use Profile Picture Peerless Tokens (PFP ​​NFT) on a rental platform or a mortgage platform. These NFTs can be rented for 30 days. Individuals can also lease Peer Tokens to themselves through a payment plan. This feature is called Rent to Own.

The ERC-4907 standard makes it easier to manage the rights to use NFTs.

Easier access to NFTs

Traditional NFT leasing systems required the lessee to pay a deposit in the form of a stablecoin or Ether (ETH); Therefore, due to the need for excessive collateral, the lessee would have to lock up more capital than the value of the NFT. Finally, due to the significant capital requirement, especially for the more expensive NFTs, the range of lessors was limited.

In the traditional NFT leasing system, the lessee has to lock up more capital than the value of the NFT due to over-collateralization.

Increasing market liquidity

Increasing the liquidity of the NFT market
Source: Cryptobullsclub.Com

The ERC4907 standard makes it easier to lease virtual objects and create new types of virtual objects. Virtual objects have diverse applications in areas such as gaming, art, profile pictures, music, and membership NFTs. With the expansion of Metaverse and the third generation of Web (Web 3), interested users should be provided with ways to access virtual objects without the need to purchase them.

ERC-4907 aims to provide people with access to virtual assets without the need to purchase by creating a system for renting virtual objects.

Where can I rent NFTs?

NFT rental platforms
Source: Medium.Com

The rental market for NFTs is young and in its infancy. That’s why there aren’t many NFT rental marketplaces yet. Market police Vera ,ReNFT And Trava NFT Currently one of the most popular NFT rental markets are.

Conclusion

Our historic journey into the future of NFTs has begun. Standard Rent NFTIt is a revolution in redefining the way of property ownership that requires collateral in the mechanism NFT Lending and Lending destroys ERC-4907 standard With the aim of facilitating how users enter the P2E world and make the process easier Unique token rental Provided. Although the new standard Rental of unique tokens It solves many of the previous challenges, but there are still concerns about the ERC-4907 protocol. Should we wait and see how effective this standard is? Can this innovation lead us towards a decentralized society (DESOC) and the democratization of NFTs for the benefit of all or not? What do you think about renting NFTs? Despite the ERC-4907 standard, will Play To Earn projects grow more in the future?

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