Just as 2020 was the year of DeFi, 2021 eventually turns out to be the year of NFTs.
NFTs were arguably the hottest trend last year, not just within the crypto space, but perhaps in all tech. Not only this, the pace at which innovation is taking place in the industry is also truly unprecedented.
In fact, NFTs have already evolved into much more than just speculative digital assets that buyers will buy and hold in the hope that their value will increase significantly over time. On that front, if 2021 was the year when the NFT-owned economy ruled, that situation could very well turn in favor of NFT rentals this year.
This is not just speculation, but strong evidence that renting NFTs will make the asset class more accessible to the masses and could eventually take the entire industry to new heights.
especially with the emergence of new platforms such as IQ ProtocolLending/Lending is likely to establish itself as the new NFT consumption model of the future. We’ll delve into those details in a bit, but let’s start with the basics first for those who are out of the loop.
NFT Rating – What is it and how can users benefit from it?
Renting NFTs – Well, the name itself is pretty self-explanatory. Simply put, it is a unique way of letting individuals use or experience a particular NFT for a limited period of time, without actually owning it.
Rented NFTs can be anything, including but not limited to in-game assets, collectibles, art, or even financial NFTs.
The entire rental process takes place in a transparent and decentralized manner through a smart contract between the lender and the borrower. This can be either a collateralized loan or a collateral-free lending depending on the platform used and the terms agreed upon by both the parties.
The benefits of NFT rentals are manifold. At the most basic level, the NFT rental industry lowers the barrier of entry for those interested in the asset class. This is important because, with the kind of buzz that the NFT industry has created around the world, an increasing number of people are looking to adopt the asset class or at least, give it a shot.
However, if recent trends have taught us anything, NFTs can sometimes be downright expensive – especially popular ones that generate a lot of hype. What NFT Rentals can possibly do is make these expensive NFTs – or any NFTs, for that matter – accessible to a wider group of users who otherwise could not afford them. Think about renting a luxury car for the weekend – it works pretty much the same way on a conceptual level.
Based on his experience with rental NFTs, the tenant may also consider buying it for permanent ownership.
What’s in it for NFT owners?
NFT rental platforms like IQ Protocol NFTs make it possible for owners to lend their assets to third parties in a trustworthy and transparent manner. This is probably the safest and easiest way to leverage your NFT stash to generate a steady avenue for passive income.
By renting collateral-less NFTs on these platforms, NFT owners can rest assured knowing that their original assets will always be protected in a smart contract. The ownership of the property is never actually handed over to the borrower.
It goes without saying that the metaverse is already moving forward as the next big thing in the decentralized tech world – much like DeFi did in 2020 and NFT in 2021. Most importantly, the rise of the metaverse won’t come at a cost. Either of the two preceding events in the crypto space, i.e. the DeFi and NFT boom. In fact, there is logical and factual evidence to show that NFTs – particularly renting NFTs – will add to the growing popularity of the metaverse.
As you probably know, the Metaverse in its current size is mostly confined to the decentralized gaming ecosystem. Play-to-earn games such as Axie Infinity, Decentraland, The Sandbox etc. are currently the main forces driving the popularity and growth of the Metaverse.
So where does the NFT rating fit into the gaming industry and the ever-growing metaverse?
Well, in traditional gaming, in-game assets really had no value outside of gameplay. However, this is no longer the case with decentralized gaming leveraging the power of the NFT.
NFT enables gamers to move their in-game assets to the NFT Marketplace and sell them to other players or collectors. NFT rental platforms add even more practical options for these users.
With NFT rental, while NFT owners can lend their assets and earn passive income, borrowers benefit from being able to access a particular NFT only for the period they use or want to experience.
Anna Nesterova, Head of Marketing at PARSIQ summed it up when she said, “To unlock that badge you’ve always wanted, consider paying a small fee to borrow a particular in-game weapon or skin. You’re not entirely interested in buying weapons, which are expensive But you are willing to pay a fee to borrow it for a week.”
Before we move on to the next section, note that play-to-earn games are just one way for NFT rental platforms such as IQ Protocol To showcase their benefits and to demonstrate their growing prominence. Furthermore, NFT rentals could potentially emerge as an equally practical alternative to experiencing other types of NFTs including NFT music, NFT art, and what not!
Renting NFTs on IQ Protocol
For starters, IQ Protocol bills itself as a comprehensive DeFi framework that enables everything from NFT rentals to blockchain subscriptions. It is a decentralized multi-chain marketplace for three main purposes which include:
- NFT Rental: For collateral-less rental of non-fungible tokens, including in-game assets, collectibles, art, financial NFTs, etc., for a pre-determined limited period of time.
- Fungible Token Renting: To rent Fungible Tokens allowing specific utilities such as voting power, membership discounts, access to products or services, and so on.
- Blockchain Subscriptions: The IQ Protocol allows users to rent tokens that can be used in a trustworthy manner to subscribe to software, media or other content.
The beta launch of the IQ protocol took place on June 30, 2021, with the aim of helping the blockchain industry adapt and cater to the world of Web3.
Less than six months after its beta launch, IQ Protocol had grown to include more than 30 projects that went on to implement IQ on their respective platforms, including Correto, Mysterium, Solsari, and Sator, among others. .
At launch, the IQ protocol was overseen by Binance-backed blockchain monitoring and workflow automation platform PARISQ. The IQ team claims to have generated 300,000+ PRQs so far.
Advantages of the IQ Protocol
As you can see, the IQ protocol targets three different groups of users. these:
- nft owner
- Gamers and NFT Users
- Blockchain Projects
The benefits of joining an IQ protocol for each group include:
For NFT owners
- The IQ Protocol turns NFTs into much more than just capital sitting idle in a wallet. This turns them into an investment that can also generate a passive income.
- NFT owners do not have to worry about default risks. IQ Protocol deploys a smart contract that allows tenants access to only a wrapped, expirable version of the original NFT. Therefore, the original asset is not expendable and the ownership of the original owner is not compromised.
- On the IQ protocol, NFT owners do not have to commit for a certain period of time. As long as there is sufficient liquidity in the pool, they are free to withdraw all staked assets along with all prizes earned.
For gamers and NFT users
- Users do not have to pay huge amounts to use NFTs, they only need it for a specific purpose and for a limited period of time.
- Users can rent NFTs without paying any collateral.
- In the event that you are using NFT for your rent but there is still some time left until the rental contract is concluded, IQ Protocol enables you to earn by making such properties available on secondary markets Is. Note that this is still a feature and will be implemented at some point.
for projects
- The IQ protocol enables GameFi, the NFT Marketplace as well as social and creator platforms to easily integrate IQ for NFT Renting.
- Project developers can use the IQ SDK to create a subscription economy for their products.
- Projects can incentivize token holders by offering passive rewards if they stake their assets in the IQ Renting Pool.
For more information visit the official website of IQ Protocol.
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