In 2017, the renowned CryptoKitties marked the beginning of NFT games, although it was based on basic trading concepts. NFT gaming platforms have advanced to the point that sub-domains like Play-to-Earn (P2E), Move-to-Earn (M2E), etc., have garnered massive support globally.
NFT-based gaming which inevitably took flight into the mainstream in 2021 has advanced considerably. You may now build structures on virtual land, engage in battles, and create new experiences instead of just collecting blockchain pets, all while earning cryptocurrency. Welcome to the world of Play2Earn games, one of the most thrilling uses for NFT tokens thus far.
One of the biggest innovations in Play2Earn games is the ownership of digital collectibles that have real-world value outside the game. Of course, the notion of purchasing and selling in-game items for actual cash is not new. Multiplayer games like Fortnite, DOTA2, or World of Tanks feature enormous economies, virtual currencies, and in-game items (like character skins and weapon skins) that fetch thousands of dollars. However, blockchain-based gaming adds a brand-new, disruptive component to the mix: non-fungible tokens (NFTs).
Despite the explosive growth, not everyone can afford to buy these in-game NFTs necessary to engage in most Play2Earn games. This bottleneck has positioned NFT rental as the rightful solution to lower the entry barrier to NFT games, provide a revenue source for gamers and lead the ultimate crusade for mainstream adoption.
The Buzz Behind Play2Earn Games and the drive for NFT Rental
The advantages of NFTs may be applied in games in a number of different ways. The modeling of playable characters and distinctive objects like power-ups or lands is the most fundamental use case of NFTs in blockchain games.
In-game NFT pricing is decided by a variety of criteria, one of which is the game’s earning potential. Additionally, market demand and community solidarity both play important roles.
The value of NFTs may rise in the future as the game’s popularity grows, and over time will create a divide between the elite class and an ordinary gamer who may not be able to afford to buy these NFTs. With the growth in the adoption of NFT rental, this gap will be bridged, creating an equal playing ground for all users/gamers.
Benefits of NFT Rental
Among many benefits to the entire NFT sector, NFT rental achieves three distinct goals in the blockchain gaming sector:
- It creates a passive revenue stream for NFT owners who may have invested a varying degree of funds to acquire NFT gaming assets,
- For the renter; it lowers the barrier to entry into the blockchain gaming space and gives them an opportunity to utilize gaming NFTs at a pocket-friendly cost.
- In the entire NFT gaming ecosystem; it unlocks deep liquidity in gaming NFTs, creating a new market for gaming assets including the seemingly illiquid ones.
For an elite gamer who has the financial backing to amass a large collection of gaming NFTs; this could be a whole new level of revenue stream for them. A popular form of NFT rental is the non-collateralized form of renting, thanks to the latest innovation brought by the ERC4907 token standard which is custom-built for NFT rental and pioneered by the team behind Double Protocol, a collateral-less NFT rental marketplace.
Double Protocol
To date, Double Protocol has teamed up with over 90+ NFT projects who are focused on growing the blockchain gaming space, lowering the barrier to entry, and reaching mainstream adoption faster. Out of this number, more than 70% are NFT gaming partners. NFT rentals driven by Double Protocol will bolster the whole GameFi and NFT market, and lead the industry’s growth. They will also contribute to more investment and increased liquidity, resulting in new opportunities for gamers and NFT holders.
With Double Protocol, users don’t have to worry about the high cost of some gaming NFTs, and nor do NFT holders need to worry about low NFT liquidity. In play-to-earn games, renting in-game assets comes with many benefits such as helping players temporarily boost their earning power, enjoy fun gameplay, and unlock exclusive perks. While the NFT owners make passive income from rental fees, the NFT renter makes passive income from playing games.
Get Aboard the Moving Train
The gaming NFT assets market is presently in its infancy. It has several projects attempting to provide intriguing use cases to both NFT holders and potential users. Furthermore, NFT rental will make NFT more available to gamers as a digital asset class. It will continue pushing the NFT sector to new heights. The bigger the market, the greater the potential earnings for NFT holders and gamers.
According to data, about $37 billion was spent on NFTs between January and May of 2022. Despite the tremendous volume, many netizens are yet to obtain their first NFT. Renting will be a simple way to get started with NFTs and their numerous utilities. We do not know how big the NFT market could become in the coming year. However, the NFT rental niche could be gearing up for a massive surge in growth.
Consequently, this growth will translate into a lucrative revenue-generating market for NFT holders. Instead of just selling digital items and NFTs, holders will be able to provide renters with the experience of owning such assets via renting. The key to making Web3 and blockchain gaming more mainstream is to decrease the entry barrier for all stakeholders involved. Virtual asset renting has the ability to achieve exactly that.
Concluding Thoughts
When compared to how rental services work in the real world, NFT rentals of P2E items and NFTs shouldn’t be alien to most people in the mainstream sector. Everyone must have in one way or another rented an item in the past. It’s just the same storyline playing in a different innovative way.
Just like Airbnb services have provided temporary homes to people who otherwise can’t afford a shelter over their head in a certain region of the world, is exactly the same way NFT rental services are giving access to players who would otherwise not be able to afford to get a foot in the door.
With NFT rental, gamers who are unable to raise the thousands of dollars necessary to initiate playing will now be able to keep a portion of their winnings after paying back their lenders. A win-win for all parties.
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