Tokyo-based crypto startup Yiedl has announced it will launch a peer-to-peer P2P (Non-Fungible Non-Expendable Token, NFT) mortgage market.
Speaking to Cointelegraph, Yiedl’s founder and CEO, Kohshi Shiba, said the platform will support a large number of tokens because most real assets are tokenized.
“For assets with permanent external benefits, I think NFTs are a suitable form of token,” said Shiba, citing subscription rights, the decentralized autonomous organization or DAO, memberships and intellectual property rights as game elements as examples of assets where tokenization is increasing .
Yiedl will facilitate mortgages with NFT
Yiedl will understand a P2P market in which users propose their preferred loan or rental terms.
When another user completed the order, Shiba stated that “the agreement is in the Yiedl protocol and is set [la] Transaction occurs “, with access to leased NFTs granted upon receipt of the initial rental.
If the loan payment is not made in time, the NFT is automatically returned to its owner and the whole process is carried out without intermediaries.
“I think Yiedl is opening up a new horizon for the NFT ecosystem and there will be new massive owners of NFT in the future,” said Shiba. “Owning NFT also becomes an investment because Yiedl has enabled NFT owners to generate residual income from their assets.”
Yiedl develops the modification of the standard ERC-721 token
To simplify the platform, Yiedl created a modified version of the ERC-721 standard called ERC-X, which was made available to other developers as open source.
Shiba stated that the new token standard “added two user classes to the existing ERC-721 standard” in the form of “user and lien”.
“The idea is that with standard support for three classes of users, application developers can expect tokens to be borrowed or guaranteed,” said Shiba. “With ERC-721, this was impossible and created difficulties when NFT owners rent / secure NFT because the property is taken over by the contract manager or the tenant.”
The NFT sector is gaining momentum
Many companies are counting on NFTs to be the primary use case for crypto assets. Blockchain games and asset tokenization promise to make distributed ledger technology (DLT) accessible to a wider audience.
In terms of infrastructure, however, it is too early for the NFT sector. A surprise auction for a limited number of CryptoKitties resulted in Winklevoss-supported NFT main market Nifty experiencing downtime last week. .