Introduction to Rentable NFTs: ERC-4907 Standard

Expanded Utility of NFTs

The NFT market has gone through a period of substantial volatility, drawing back the 2021 frenzy behind NFTs that saw the market emerge in a massively emphatic way. Non-fungible tokens became all the headlines and saw a sweep of mass adoption from institutions all looking to cash in.

Chainalysis

In hindsight, much of this frantic speculation was just that — speculation. For every NFT project attempting to create some utility, there were 10 that weren’t. When Bored Ape Yacht Club initially exploded, they were nothing more than NFT versions of apes. Now that BAYC has the backing of several billion dollars, things have shaped up differently with ApeCoin and the creation of Otherside.

Still, an ongoing problem has been the major lack of real utility with modern NFTs. In the future, there are many different use cases for NFTs.

Some of these include:

• Verification of sensitive documents on-chain

• Ownership confirmations on-chain (Deeds, intellectual property, etc.)

• Digital LAND use & ownership

• Verifiable certifications (degrees, certificates, etc.)

NFTs offer unique ownership that is trustless with the use of blockchain ledger systems. With the ERC-4907 token standard formally introducing the ability to rent, this significantly boosts the use case of existing NFTs and offers the grounds to get closer to the future use cases outlined above.

ERC-4907 and the Metaverse

The biggest sector to benefit from the rentable NFT model is the metaverse space. There are multiple use cases spread out between different aspects, most notably with LAND and blockchain gaming.

Metaverse LAND

LAND refers to plots of digital land within virtual worlds, including protocols like The Sandbox or Decentraland. LAND is represented by an NFT, which can typically be purchased within a digital marketplace like OpenSea.

The LAND itself can be developed, whether by the owner or through builders. With just this model, the value of the LAND is subject to market speculation and doesn’t offer any specific utility. This is not the case when accounting for rentable NFTs.

It gives the owner of the LAND two major potential revenue streams:

• Becoming a landlord and renting out LAND

• Monetizing the LAND with advertising opportunities

These reinforced use cases are what enables LandVault to continue its mission of accelerating the metaverse economy. The ERC-4907 standard allows LandVault to give brands the option to simply rent LAND out for various projects, events, or other digital activities.

Likewise, with LandVault’s monetization solutions, creators & LAND owners have the ability to generate passive income. This, over time, expands the utility & growth of the metaverse economy altogether.

Blockchain Gaming

Although appearing to be relatively inclusive on the surface, those participating in GameFi and utilizing P2E titles for revenue can often find steep barriers to entry. Blockchain gaming titles are based around the utility of NFTs and cryptocurrencies.

In many games, items & upgrades within the gaming experience are represented by NFTs and give the player advantages. These advantages can help the player win battles or excel at minigames, generating more income for the player. Because of the added value, these NFTs can be difficult to acquire.

Blockchain gaming accelerators counter this problem by offering gamers the ability to rent NFTs out. This significantly boosts the players ability to perform well, earning more income in the form of P2E. With the ERC-4907 token standard, this concept has gotten even easier to implement.

Summary

The ERC-4907 token standard is a pivotal step forward in the development of the metaverse economy. The use cases of such a token are widespread through multiple sectors, including virtual experiences (renting assets), blockchain gaming (player advantages), or even LAND rentals within virtual platforms like The Sandbox.

The standardization of such a concept on the world’s largest smart contract platform in Ethereum gives the space stability to implement the use cases outlined above. With that, new applications, concepts, and other use cases can be introduced to the space and implemented. In other words, this will spark even more innovation & growth within a rapidly emerging economy.

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