DareNFT is an upcoming project that just might change the way we use and trade NFTs. With the massive growth, blockchain has seen over the past year, more and more people are getting involved each day. With this, the NFT space has exploded. This meteoric rise has brought new entrants into the arena and many people are looking to create their own marketplaces to challenge the current king, Opensea.
While it remains to be seen who stands on top when the dust settles, DareNFT, rather than join the ongoing race for the premier marketplace, has chosen to work out the defects in the current system.
Fad Or Legitimate Asset Class?
NFTs caught on like wildfire this past year but even with that, many people just hear about them and have no idea what they are. Although they are built on blockchain similar to conventional cryptocurrencies, their use case is different. As the cryptocurrency analog is real-world currency, NFT’s analog in the real world is art or more appropriately, collectibles. NFTs rather than being likened to currency systems are more of a digital item that serves a specific purpose that creates value.
Although that purpose for most people is to create art, some companies have developed NFTs to integrate into various industries such as real-estate, cyber security, and much more. The problem now has become the fact it has a significant barrier to entry and sometimes certain parameters are not well defined.
DareNFT Is Solving The NFT Problem
Similar to how multiple altcoins rose after Bitcoin rose to prominence to solve the pertinent issues concerning it, many companies are now popping up to potentially help revolutionize the way NFTs are handled. One such company is DareNFT. This is a project built from the ground up to provide viable alternatives for people in the NFT space. These alternatives are based on three main problems:
For new users into the NFT space, it can be surprising and sometimes overwhelming to see the gargantuan price tags associated with some NFTs. While some price tags are arbitrary, coming from no legitimate value, and are simply just ‘hype’, some NFTs derive their value from their history. Some NFTs are what they are because they derive value from previously minted NFTs.
Similar to how movie remakes derive their popularity from the originals, some NFTs also are based on previous work. The new DareNFT system will look to identify this history among NFTs and provide it in detail to people pursuing them.
The current NFT system does not take into consideration joint ownership of NFTs. The same way art can be owned and created by multiple people working in tandem is the same way NFTs can also be produced as a result of cooperation.
Introducing smart contracts to NFT ownership means that not only will the joint ownership of NFTs be recognized but future disputes in the absence of a contract can also be avoided.
So you’ve just bought your first NFT. You’re already planning how you’re going to spend your future profits as you wait for it to sell. The problem at this point is that many such owners are struck with a feature that is intrinsic to the current nature of NFTs. Illiquidity.
Unlike crypto that can be sold in chunks depending on your holdings, NFTs are all or nothing. With DareNFT, users will gain some recompense in case of illiquidity. The new project is looking to allow people to rent out their NFTs to other holders. This solves a two-front problem.
First, people without the amount they need to purchase the NFT completely can still hold it for a while and return it at the end of the defined period. Second, the holders themselves will gain profit for relinquishing ownership for some time, providing them with profits that would otherwise have gone unrealized.