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HomeCryptoThe EIP-4907 enables the rental of NFT thanks to a new standard...

The EIP-4907 enables the rental of NFT thanks to a new standard of tokens

Double Protocol oversaw the creation and implementation of EIP-4907, which paves the way for NFT leasing. This new standard backward compatible with the ERC721 standard makes it possible to dissociate the right to use an NFT from its right of ownership.

The EIP-4907 facilitates the rental of NFTs

Thanks to the Ethereum Improvement Proposal number 4,907 (EIP-4907), it is now possible to put its non-fungible tokens (NFT) for rent. This technical novelty gives rise to a new standard of NFTs: ERC4907 tokens.

It’s actually a backward compatible expansion of the initial standard of NFTs, namely the ERC721 tokens. This update was created and supported by the Double Protocol:

Double already allows the rental of NFTfor the Ethereum Name Service (ENS) domain name protocol, the Decentraland (MANA) metaverse and the Warena (RENA) blockchain game.

👉 To go further – Find our guide on non-fungible tokens (NFT)

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The actual operation

All the interest brought by the EIP-4907 lies in the dissociation of the ownership of an NFT from the rights of use of this one. In other words, this new functionality makes it possible to delegate, for a given period, certain rights granted by the NFT. More concretely, it is for example possible to rent land from a metaverse to create an ephemeral event.

All is set in advance, whether the price of the rental, the duration thereof and the rights it confers. This brings greater flexibility to the market. Thus, it is no longer necessary to spend hundreds or even thousands of dollars to play your favorite blockchain game.

It can be translated otherwise. One would imagine that the owner of a Bored Ape Yatch Club (BAYC) NFT rent it out, to allow someone else to attend a community event. In this way, he retains ownership of his assetbut can generate an additional return, temporarily monetizing it.

While price is sometimes an important entry barrier in the world of NFTs, this novelty allows a huge advance. In addition, thanks to the blockchain, the right of ownership is not questioned. It is such innovations that will make it possible to move towards real democratization among the general public.

👉 Also in the news – Axie Infinity: the Ronin (RON) bridge available again after several months of closure

Source: GitHub

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