Before you step into the NFT world, it’s quite essential to look into the basic NFT Dictionary Terms. This would make your learning journey easier. NFTs are a new form of digital asset. They’re not necessarily cryptocurrencies – and they’re not quite assets. NFTs are unique, and each one has its own story to tell.
To get started with NFTs, you’ll need to understand some new terminology that comes with them.
In this article, we’ll explore some key concepts in the world of Non-Fungible Token (NFT) terminology and how it affects your trading experience!
Fundamental NFT Dictionary Terms:
The Metaverse is a blockchain-based computer-generated simulation stage. The Metaverse is a blockchain-based virtual world, the Metaverse is a blockchain-based virtual universe, and the Metaverse is a blockchain-based virtual space.
Tezos is a blockchain platform that is built on a proof-of-stake consensus mechanism.
Tezos basically addresses key barriers facing blockchain adoption for assets and applications. The Tezos blockchain consists of an evolving set of rules that govern the behavior of its networked participants, including developers, miners, stakers (validators), and users.
Gas is the unit of estimation used to determine the cost of transactions on the blockchain. As new blocks are added to a blockchain, each block becomes part of a growing chain of blocks (hence, “blockchain”).
Minting is one of the primary words of NFT Dictionary terminologies.
Minting is the method involved in making another NFT.
The Mint fee is the cost associated with minting, which is paid to the platform where you create your NFT.
They can vary depending on the platform and may only be charged once or several times throughout a coin’s lifetime.
You can track more data about these in each specific token’s FAQ or help center on their website.
Gas wars are notoriously common in the world of blockchain and NFTs, especially during a project launch or high-value sale.
When many people compete to get their hands on a specific NFT, the demand causes Ethereum transaction prices to spike due to network congestion.
The Solana Blockchain is a public, open-source blockchain built to host decentralized applications requiring high throughput and low latency.
The native cryptocurrency used on this blockchain is called SOL, which is what users pay to use the network.
The PoH consensus algorithm powers this network—the same algorithm used by Bitcoin’s Lightning Network (LN).
It works by hashing previous blocks to build a chain of proofs and secure transactions without relying on miners or mining pools.
-This means there’s no need for expensive hardware or specialized equipment.
-This isn’t just a pretty face; Solana provides an impressive amount of utility for developers looking for high throughput at low cost:
NFTs, are a sort of token that allows you to own unique digital assets. While something like Bitcoin is fungible (meaning each unit is interchangeable with other units), an NFT can’t be swapped out for another.
An NFT roadmap is essentially a project team’s pitch deck. Fortunately, you needn’t bother with being an expert in NFTs or blockchain technology to create one; in fact, anyone using PFP projects should consider providing some form of a roadmap.
A well-planned roadmap always has SMART goals. And you might be familiar with those being realistic, achievable, and measurable. It’s an easy way for people who don’t have a technical background to understand what your project is about, why it matters, and what impact it will have on them.
If you’re starting with NFTs and blockchain technology in general, consider making this your first step towards becoming more familiar with these technologies.
PFP (short for “profile picture”) is a digital token or artwork designed to be displayed as a person’s social media profile picture. Most popular NFT collections, such as Bored Apes and Doodles, are PFPs.
An open edition is any NFT for which any number of editions can be minted.
For example, if you were to create an NFT worth 1 Ether and there’s a maximum of 100 coins in existence, then after you’ve sold all 100 coins and the mint is closed, no more copies of the token will ever be replicated or created again.
This term is used when an artist creates a piece of work that only fully reveals itself after it’s purchased.
For example, if you buy an NFT that’s part of the generative art category, then the artwork won’t be created until the NFT is minted, and you can’t know precisely what you get until after you buy it.
To put it simply: OpenSea is the Amazon for NFTs, and it’s an online marketplace where anyone can easily create and sell their digital assets.
You can find anything from lotions to the artwork on OpenSea, all with unique attributes like color, size, and condition.
This makes it easy for the users to discover new items in their favorite games or applications while also giving them access to more options than ever before – because nothing is stopping you from creating your own thing.
Opensea was one of the earliest NFT portals open for market; and so has been listed within the NFT Dictionary terms.
A floor price is a minimum price that a seller is willing to accept for an item. For example, if you are selling a couple of shoes and you have set your floor price at $100, then no one can buy them from you for less than $100.
SuperRare is an exclusive crypto art market for buying and selling non-fungible tokens (NFTs). NFTs are virtual, unique digital assets that live on the blockchain and are fully transparently tracked.
SuperRare is an NFT marketplace and airdrop platform. They accept artists from all backgrounds to create their own NFTs using SuperRare’s IPFS file sharing system. This enables users to upload their NFT files and verify them by the platform before they can start selling them in the marketplace.
A whitelist is a list of NFT addresses that have been pre-approved for minting. Some projects allow users to add their wallet addresses to a whitelist in exchange for exclusive rewards or benefits, like reduced transaction fees and early access to new features.
An NFT airdrop is a circulation of NFTs or computerized resources shipped off a web3 wallet address for nothing as an advancement or as an added incentive for partaking in an encounter or buying another computerized resource.
Limited Edition is a type of NFT that celebrates the country’s beauty and varied diversity across flora and fauna. The artworks will give travelers a chance to own digital collectibles of their favorite destinations.
A Hot Wallet is a wallet that is continually associated with the web and allows you to store, send and receive tokens. Hot wallets are ideal for day-to-day transactions because they’re easy to use but are less secure than cold wallets.
A cold wallet is any wallet that is not connected to the internet. Most commonly, this refers to a physical device you can use to store your cryptocurrency offline.
It’s often called a hardware wallet or “cold storage.” Because this device has no connection to the internet, it makes it much more challenging for programmers or other vindictive entertainers to get to your funds.
The most common types of cold wallets are USB sticks, small and easy-to-carry devices that can be plugged into any computer without being connected to the internet.
Royalty is an NFT royalty payment that compensates original NFT creators for using their non-fungible tokens (NFTs).
Utility tokens are digital tokens of cryptocurrency issued to fund the development of a cryptocurrency. -This is different from security tokens, which are used for investment purposes and ownership of an asset.
A Governance Token is a type of NFT that allows token owners to vote on proposals and decisions affecting a protocol.
Unlike regular NFTs, which can be used as collectibles or tradeable assets, Governance Tokens influence the direction of the project they represent.
2PE is an acronym for 2-Party Escrow. In a 2PE transaction, two parties are involved: the buyer and the seller. After a purchaser and dealer consent to a 2PE marketing, they will decide on an escrow agent who will hold their funds until all conditions of their agreement have been met.
Interoperability is the limit of somewhere around two frameworks to exchange information and work together, regardless of their differences. In this sense, interoperability means NFTs can be used across multiple networks and frameworks.
A CC0 NFT is a form of copyright that enables the creator to allow their NFTs to be owned by others and can also be used to waive your trademark, patent, or other rights.
-This is a public domain dedication that allows users to release their work into the public domain.
Discord are people that are actively collecting, trading, selling, and engaging in conversations about Non-Fungible Tokens or NFTs.
-This is where we host our Discord server—if you’re interested in joining us there, feel free. You can sign up or enter if you already have an account.
An NFT on-chain is a token with the metadata and image stored directly on the blockchain. Most projects out there store their metadata on a decentralized file storage system such as IPFS, but this means it’s not directly stored in the same place as the token itself.
Staking is a process where you can secure your non-fungible tokens (NFTs) on a specific platform or protocol. In exchange for this particular action, you are entitled to receive staking rewards.
This can be done through either the use of smart contracts or by simply depositing your NFTs into an exchange that is running staking rewards.
NFTs are a relatively new type of digital asset, and they’re growing in popularity. An NFT fall is the release of a new NFT project.
The term “drop” refers to the exact date and time that this release will occur and what amount each token will cost during its initial offering (usually around $0.01). If you purchase at drop time, it can save you some money because all future sales after that point have higher prices per token.
Conclusion On NFT Dictionary Terms
NFTs are diving in for the long stretch, and their notoriety will only grow. If you’re interested in learning more about them, we recommend reading up on some of the resources we’ve listed above.
We trust this article has helped you with understanding NFTs better and given you some of the vocabulary necessary for understanding how they work!