While non-fungible tokens (NFTs), have been around since 2014, they are only now coming into the spotlight and attracting attention from celebrities as well as investors. The technology and economies that power NFTs are not only visible in profile photos (PFP), but it is also quite interesting. Thanks to concepts such play-to earn (P2E), and the metaverse, developers are creating new utilities and functions for NFTs.
Unfortunately, NFTs can be expensive, making them more difficult to access for mainstream users. Although the emergence of NFT rental platforms is changing the narrative, existing solutions still face issues such as lack of robust security and high development/integration costs.
Double Protocol is aiming to address these issues through its recently launched Dual-Role NFT Standard, EIP-4907, a game-changer in the NFT rental market.
What is Double Protocol?
Double Protocol is a decentralized NFT platform that can be rented on Ethereum or the BNB Chain. It supports the rental of virtual land in Decentraland, as well as in-game resources in the popular GameFi Project Warena.
NFT renting is a simple idea. The idea behind NFT renting is simple. Just like people can rent luxury cars and homes for a brief period of time, users can enjoy the experience and only use it for a few days without becoming its owner.
The NFT rental market offers users access to a variety of NFTs including digital art, in-game assets and financial NFTs.
Double Protocol is a simple, inexpensive and flexible NFT rental service that allows Web3 users to enter GameFi or the metaverse. It also extends the functionality and liquidity of NFTs.
The team includes developers, game product specialists, tokenomics designers and marketers who have been involved in the crypto industry for more than five years.
The Dual-Role Standard EIP-4907 For NFT Rent
Double Protocol’s Dual-Role NFT Standard was launched in April (EIP-49907). This critical component of NFT lending allows for the project to seperate NFT ownership from usage by a Dual-Role mechanism.
The EIP-4907 standard has been merged into Ethereum master branch. This allows owners to rent out their NFTs to others without having to transfer ownership.
It will take only 30 lines of code to integrate Double Protocol into any GameFi project. This integration is even easier with EIP-4907 because it doesn’t require any coding.
Double Protocol isn’t the first to use the Dual-Role method to seperate ownership and usage of NFTs. The team did notice a lack consensus in naming the Dual-Role mechanism and how to implement it, which made collaboration difficult. Double Protocol therefore proposed EIP-49907.
Double can easily remove the owner rights from the smart contract by applying the EIP-4907, which allows them to enable rental. Also, the expires of dual-role standards are included.()function. The borrower’s usage rights automatically cease at the end the rental period, without any additional on-chain transactions.
Double deploys the dual role contact first to make sure that the underlying NFT or in-game asset has two roles. Once confirmed, it automatically creates a doNFT that corresponds to the original NFT to represent the user’s rights.
The doNFT contract will then be executed and the doNFT issued to the borrower when the borrower has paid the rent. Renters have several rights during this time, including subleasing and merging as well as financial derivatives.
After the rental period is over, the doNFT agreement automatically revokes borrower’s use rights. The dual-role solution reduces barriers to entry to the NFT space because borrowers don’t have to deposit large collateral and NFT owners don’t worry about credit risk and security.
The Wrapped Dual Roles NFT
Existing products may not be able to update smart contracts to allow dual roles. Double Protocol has an alternative solution, the Wrapped Dual Roles NFT.
The protocol generates a new NFT that contains user information and wraps it on top of the original. The wNFT is similar to how ETH was wrapped into an ERC-20-compliant wETH. It eliminates double spending because it corresponds 1:1 to the underlying NFT.
Double Protocol introduces doNFT (a new form) of NFT. It is a certificate for the use of an NFT. DoNFTs ensure that NFT usage rights expire after the rental period ends.
Through Double’s solution, the market contract mints the doNFT for the renter after they pay rent, which gives them temporary usage rights of the NFT for a specific period until the rent expires. The doNFT can be split into shorter-term doNFTs or combined with doNFTs for longer durations. This is useful for renting and lending.
DoNFTs solve the problem of NFT liquidity. They allow for derivative financial products such as installment payments to be developed and facilitate interoperability between NFT financial protocols.
Renting non-fungible tokens opens up new possibilities. Double Protocol achieves its goals with its EIP4907 Dual-Role Non-Fungible Token standard. This protocol can extract owner rights from ownership, which is essential for NFT rentals. If widely accepted, the Dual-Role system will become the standard for NFT construction. It will also be an ideal choice to spur innovation in the NFT industry.