Exploring the benefits of renting NFTs

By Kameshwaran Elangovan

In today’s world that has embraced both decentralization and digitization so much, NFTs do not need an introduction. While for most of them, NFTs might conjure up images of primates and pixels, they have come a long way from being confined to profile pictures.

Thanks to the introduction of the virtual world fueled by NFTs and the blockchain, commonly called the magnet, NFTs have started to offer a lot more of utility than just pride and exclusivity. This does not, however, mean that the exclusivity factor has vanished into oblivion.

The confluence of NFTs and the games has not just created a revolution in game ecosystems but has marked an era of evolution where gaming assets can be traded from one person to another. This also would mean that NFTs are not just positions but utility assets. This has, therefore, created a hazy-yet-pronounced line of demarcation between people who “own” an NFT and people who “use” an NFT.

Come to think of it, this situation is not completely alien in the real world. We have seen the same happen with vehicles and real estate. This parity has been instrumental in spawning a new class of business called rentals.

Given the fact that NFTs are also going through the same phase right now, it makes a lot of sense to introduce rentals on NFTs. The good news is that it is already there!

Jump.trade, one of the leading NFT marketplaces in the world and the top in Asia, has introduced rental features on its cricket NFTs to play MCL, a magnet cricket game. This has opened opportunities for a lot of people to play that game without actually owning an NFT… Especially when it is mandatory for people to play the game with an NFT if they have to reap the fullest benefits of the game.

No new concept, however interesting it is on paper, can survive without real world benefits. NFT rental brings a lot of benefits to both the people who own the NFT and give it for rent, and people who use the NFT that has been given out on rent.

For the owner, renting out an NFT presents the best benefits of both worlds. It is to be remembered that unlike profile picture NFTs, game NFTs and magnet NFTs are expected to deliver utility. Therefore, it might not be a good idea to just keep the NFT without putting it to good use. Of course, they will undergo the appreciation as the game develops, but this also means that the owner of the NFT is missing out on some of the best opportunities to earn rewards by playing games with it. Simply put, the NFT sits idle without fulfilling its purpose.

In the other end of the spectrum, lies an eager player who is extremely skilled in playing the game but does not own an NFT. The player probably has enough skills to play the game and win some extraordinary rewards… If only they had an NFT. They might not have the sufficient financial capacity to completely buy an NFT. That being said, there are also people who might have the skill but might not always have the time. For all you know, they could play during the weekend, make a quick buck, and become confined to their jobs during the weekdays.

NFT rental bridges the gap that lies between these two… And that too, in the most effective and efficient fashion. For the owner of the NFT, it opens up passive revenue generation opportunities. The owner can rent out their assets, and when the player earns a reward, they can take a cut from the reward, and that too, without even breaking a drop of sweat. They get to do this without even risking the possibility of losing the NFT in a trade that might undervalue the digital asset in the long run… which would be the usual risk if someone has to let another person use the NFT.

For the person who rents it, they stand at an advantage to use an NFT that was not theirs to own. They can reap the benefits of the NFT without having the need to spend so much to fully buy out the NFT, especially if they do not intend to play the game for an extended stretch of time.

Overall, rentals create a robust ecosystem of NFT movement within users, and it also expands the possibilities of people coming into the ecosystem. Simply put, the number of people using the game platform or the magnet is not limited to the number of people owning the NFTs… Or even the number of NFTs for that matter. this will also ensure that the game/magnet stays engaged, and all the magnets are put to good use without staying idle in the wallets of users who might have had the money and who might not have the time to use these NFTs.

It is often said that time is money and money is time. When it comes to NFTs, with the rental feature, both these are surely interchangeable. The person who has the money but does not have time can still make their money by making someone else give their time in spite of them having no money.

The author is co-founder , COO ,Guardianlink

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