NFT Guide

NFT Terminology

You want to get into NFTs, but you’re intimidated by all of the terminology? It is only normal. It speaks in its own language.

Asset

Asset is a digital collectible.

Blockchain

An open spreadsheet to which everyone in the crypto world has access and which records any modifications or transactions.

Bridge

You can use a bridge service like Rarebits if you want to trade your NFTs but don’t have a mechanism to do so (such as Shapeshift or Kyber Network). For a price, a bridge will transfer your tokens from one blockchain to another, and you will be able to retrieve them on the new chain.

Burning

Send an NFT to the NFT contract address if you wish to get rid of it. Your tokens will be destroyed, and they will no longer be transferrable.

Collectible

Something that has value or rarity, such as mini-figures or special edition sneakers.

Cryptocurrency

Cryptography is used to safeguard financial transactions and manage the creation of new coins in this sort of digital money, like Bitcoin.

Decentralized Exchanges (DEX) 

Instead of going through a third party, decentralized exchanges allow for peer-to-peer transactions.

DeFi

Decentralized Finance.

Drop

This is an event in which users can get free tokens for holding onto specific assets.

Ethereum

The name of a cryptocurrency that supports Dapps and smart contracts and is also known as ETH.

Etherscan

This is the most widely used block explorer for determining the value of digital collectibles. It can also be used to check balances and transactions.

Farm

Instead of purchasing NFTs with funds, you can “farm” them by mining their tokens with your GPU. Your computer will join a network of other computers mining on the blockchain.

Fiat

The name given to currencies like EURO, USD, or GBP.

Gas

Amount needed to complete cryptocurrency transactions on the blockchain. Gas must be paid every time you buy an asset, send ETH, or set up a smart contract in order for the transaction to be completed.

Minting

Minting can be divided into two categories: When an asset producer determines who can generate tokens/NFTs, this is known as Mint-A-Token. Burn Minting encrypts all NFTs with a new digital wallet private key, making them irreversibly locked and untransferable.

NFT

Non-fungible token. A unique digital asset that is stored on a blockchain. No other token or cryptocurrency can replace it.

Peer-to-peer (P2P) 

P2P trading is used when you need to make a transaction without going via an exchange. It’s also known as direct trading or person-to-person trade.

Rarities

On the Ethereum blockchain, items of varying rarities are issued with a unique number. They’ll be designated “Legendary” or “Mythic” and have unique IDs and metadata.

Smart Contract

An agreement between two or more parties that automatically executes, under certain conditions. They’re immutable, irrevocable, and unchangeable because they’re enforced on the blockchain network.

Tokens

These are digital assets, like as ERC-20 tokens, that allow users to raise money for projects via crowdfunding/ICO protocols.

Wallet

This is where you keep your tokens while they aren’t in use. Consider it a home where you may keep all of your digital collectibles until you’re ready to sell or send them somewhere else. A wallet can be a cold storage wallet, but it can also be any place where you can send and receive stuff utilizing Metamask and MyEtherWallet.

How about Twitter slang?

While the above terminology focuses on the more technical sides of NFTs and cryptocurrencies, there is a totally different language that is used by NFT community, especially in Twitter. CryptoPunk #6529 explains the Twitter NFT slang in a flawless manner, here.

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