Many of the jargon, abbreviations, and deliberate misspellings in NFT terms used by NFT experts will make little sense to anybody outside of the community. If you want to be an active participant in the NFT arena, learning the jargon of NFT is essential.
Though I lack NFT expertise, I did my best to clarify the most salient concepts that came up during my time on the Supplain/WOF team in order to produce this post.
What are NFTs?
Let’s start at the very beginning and define NFTs, shall we? Jedi, prepare for your first training session. Put down the lightsaber for a second.
Although the term “non-fungible tokens” (NFTs) may seem like a complex financial jargon, it is really rather simple. Unique digital assets on the blockchain, NFTs cannot be exchanged for other assets and, as the name suggests, are non-fungible. Any audio, video, or graphical file may be considered an NFT.
Owning NFTs also provides a novel approach to demonstrate title. Imagine the Mona Lisa for a moment: The original Leonardo da Vinci painting is housed at the Louvre Museum in Paris, France, however you may get a print, a photograph, or a digital reproduction of the piece. However, you are still looking for THE ONE. You don’t have a genuine Mona Lisa replica. That’s quite close to the way NFTs function. NFTs are genuine and one-of-a-kind digital assets, similar to baseball cards in that only the owner of the original asset may claim any rewards.
Additionally, the Ethereum blockchain, of which NFTs are a component, ensures the data is public. Because it is decentralized, you can see what digital products that individual has by clicking on their link. But once again, you will not be able to change that fact.
NFT A to Z: The NFT terms you need to know
When someone gives you exclusive information on an NFT project that helps you make more money in less time.
A series of characters that stands in for a cryptocurrency wallet and may be used to transmit and receive funds.
Depositing digital currency into a recipient’s wallet, often at no cost. To foster a more robust community and increase the value and usefulness of current NFTs, projects often airdrop new NFTs to their holders. For instance, in order to qualify for an airdrop, you must first own the underlying asset.
The act of “burning” an NFT is synonymous with its destruction. It’s possible the team will ‘burn’ the remaining 5,000 NFTs if, for example, they only sell 5,000 out of a planned 10,000. In some projects, investors may “burn” two NFTs in exchange for a third, rarer NFT.
Imagine it as a shared Excel document that keeps track of all the crypto industry’s transactions and is accessible to everybody.
Getting over your regret at missing out is the antidote to FOMO (Fear of Missing Out).
Companies working on NFT projects may occasionally have a pre-sale where participants can buy tokens using ETH (or their own cryptocurrencies). Investors and early adopters get the majority of the tokens sold.
DAO refers to a group that operates independently of a central authority. Owners of NFTs in a decentralized autonomous organization (DAO) like Head DAO have a say in how the DAO is run and may cast votes to make changes. In an effort to strengthen their community ties and guarantee their continued success, several NFT initiatives are adopting organizational models like these.
Consider this an abbreviation for “distributed ledger system” in the context of money.
One cryptocurrency that facilitates decentralized applications (Dapps) and smart contracts by the same name.
Few is a contraction of “few comprehend.” Similar to “probably nothing,” it’s a refined expression of fear of missing out.
Twitter and Discord users often spell “friend” incorrectly.
Not gasoline, sorry. In the context of the Ethereum blockchain, NFTs are analogous to the gas used to perform a transaction. This cost reflects the time and energy spent by Ethereum miners (computers running software) processing your transaction. Gas prices are set according to market forces. It all boils down to the number of persons attempting a transaction and the price they’re ready to pay. More individuals using Ethereum means you may offer miners a higher reward for completing your transaction immediately. The price of gasoline functions much like an incentive to bypass the queue.
You may also like reading: What is GameFi? ‘Play-to-Earn’ explained.
In this case, I’ll choose for the layman’s, oversimplified explanation: Metadata is the information about an NFT that describes what it is and how it is used. The most intriguing aspect of information is how it describes the appearance of a work of art or a treasure. This is why you may need to wait for OpenSea’s metadata to refresh before you can see you’re freshly created NFT.
A person with little familiarity with the NFT market.
The abbreviation “PFP” means “profile picture.” Avatars in the early stages of the metaverse, such as on Twitter and Discord, may be anything from apes to punks to dogs to cats to skeletons.
The quickest and most convenient method to transmit NFTs or Ethereum using a mobile wallet that supports reading QR codes is to simply scan the code, verify the transaction details, and then tap “send.”
Disastrous is slang meaning ‘wrecked.’ While no one wants for their investment portfolio performance to appear like it was in a car accident, it sometimes cannot be helped if it does.
A scripting language for tokenized cryptocurrencies on the Ethereum blockchain. SID is an acronym for “Secure Interoperable Datamarketplace,” which is what this language creates whenever someone designs a new NFT on the blockchain, along with accompanying images, 3D models, and information describing the asset’s background and purpose.
A block is a record in the blockchain that verifies the exchange of one cryptocurrency for another, such as when selling non-fungible tokens.
People prefer ‘Up Only’ NFT pricing over the less desirable ‘Down only,’ much like the stock market.
A huge hall where both the living and the dead Vikings may celebrate their priceless NFTs.
We Are All Gonna Make It is the meaning of WAGMI. If a town invests collectively in an NFT venture with promising prospects, everyone stands to benefit financially.
Someone with a large quantity of NFTs, Bitcoin, Ethereum, or any other cryptocurrency. And we can all see it when they make a move.
Finally, some words on the NFT
You now know the essential jargon that will distinguish you from a novice. There are always more being made, so this is by no means a complete list. If there is anything more, please let me know so that I may include it.
1. What is an NFT?
An NFT, or non-fungible token, is a type of digital asset created using blockchain technology. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-for-one basis, NFTs are unique and cannot be exchanged on a like-for-like basis. They represent ownership or proof of authenticity of a particular item or piece of content, such as digital art, music, or virtual real estate.
2. What does “minting” mean in the NFT world?
Minting refers to the process of creating a new NFT on the blockchain. This process involves “uploading” a digital file onto a blockchain platform (like Ethereum), where it is permanently recorded and certified as an NFT. Once the NFT is minted, it can then be bought, sold, or traded on various NFT marketplaces.
3. What is meant by the term “gas fees”?
Gas fees are the transaction fees that users need to pay in order to perform operations, such as minting or trading NFTs, on the Ethereum network. The term “gas” refers to the computational effort required to execute these operations. Gas fees can vary based on network congestion, and they have been a point of criticism due to their potential to be quite high.
4. What does “provenance” mean in relation to NFTs?
Provenance refers to the history of ownership of a particular NFT. The blockchain records every transaction related to an NFT, including its original creation and all subsequent trades. This unalterable history serves as proof of authenticity and ownership for the NFT, giving potential buyer’s confidence in the asset’s legitimacy.
5. What is a “wallet” in the context of NFTs?
A wallet in the context of NFTs is a digital wallet where users store their cryptocurrencies and NFTs. These wallets are secured by private keys, which the owner must keep safe in order to access their assets. Wallets allow users to manage and trade their NFTs on various platforms, and are essential for anyone engaging in the NFT space.