NFT Terminology 2022

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The Ultimate NFT Terminology Glossary 2022

This is the NFT Terminology Glossary you’ve been searching for! Are you ready to dive into NFTs, but you’re intimidated by all of the jargon? I completely understand. It speaks in its own language. There’s no reason to be concerned. I’ve put up this Ultimate Glossary of NFT Terms for you to use as you learn more about the crypto world.

NFT Glossary 2022

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A digital collectible may also be referred to as an asset.

NFTs are digital assets that exist on a blockchain network and are distinguished by their uniqueness and distinctness from other digital assets. Any kind of media may be used: video, still image or even a vector file of a game character. The question is, why do we need NFTs if we already have these resources available on the internet and freely accessible?

For the simple reason that NFTs allow for digital ownership and serve as a proof of authenticity for almost anything, you can actively own and change parts of your digital world instead of simply looking at it. You can also collaborate with communities and collectively build projects instead of simply observing them. NFTs have had a significant influence on the creative economy, and the general public is quite enthusiastic about the technology.

Bitcoin / BTC – is a well-known cryptocurrency that may be used to purchase and sell NFTs.

Consider blockchain to be an open spreadsheet to which everyone in the crypto world has access and which records any modifications or transactions.

Use a bridge service like Rarebits if you wish 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.

BTC stands for Bitcoin and is an acronym for it.

Sending an NFT to the NFT Contract Address — If you wish to get rid of an NFT, send it to the NFT Contract Address. Your tokens will be destroyed, and they will no longer be transferrable.

BURST — These are the NFTs you wish to purchase, also known as market assets.

Buyers – These are persons who purchase digital collectibles with the intention of reselling them for a profit. It’s similar to real-world trading in that you strive to make more money than you put in.

CAT stands for Cryptocollectible Asset Token and is short for CryptoKitties. It’s one of Ethereum’s most popular NFTs.

Think of a collectible as anything of worth or uniqueness, such as mini-figures or limited-edition footwear.

CDSs (Community Designated Sellers) — These are persons that put up their addresses with certain goals and costs in mind for those wishing to sell their belongings.

Crowdsales — Companies developing NFT projects may have a pre-sale, enabling anybody to acquire ETH (or their own altcoins to purchase the new tokens). The tokens acquired will be distributed to early investors and individuals who have been with the project from the beginning.

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Cryptocurrencies are also known by the term “crypto.”

Cryptocollectibles — These are non-tradable blockchain assets that represent one-of-a-kind digital goods like crypto art or crypto kittens (yes, the first NFTs).

Cryptocurrency is a sort of digital money, similar to Bitcoin, that use encryption to safeguard financial transactions and regulate the creation of new coins.

Apps that operate on decentralized networks are known as Dapps (and not just Ethereum, but any platform). They’re all cryptocurrency ventures.

DEXs (Decentralized Exchanges) — These are exchanges that enable peer-to-peer transactions instead of going via a third party.

Think of DeFi as an abbreviation for decentralized finance.

Drop – This is an event in which users get free tokens in exchange for holding onto certain assets.

ETH stands for Ethereum, which is the blockchain on which all NFTs are stored.

Ether is a cryptocurrency with its own blockchain, similar to Bitcoin’s BTC. The Ethereum blockchain is where Ether is stored. It’s utilized as “gas” to carry out transactions and make Dapps work effectively. If you wish to acquire an asset, you must spend more ETH than the item’s true cost.

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

Etherscan – The most common block explorer for determining the value of your digital valuables is Etherscan. It may also be used to double-check balances and transactions.

Exchange — If you want to swap your crypto assets for other crypto assets, you’ll need to use a platform like Binance to do so. You may also use credit cards to make purchases.

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

Fiat – This is the term used to describe currencies such as the US dollar, Euro, and British pound.

Fungible Tokens (FT) are transferable, interchangeable tokens similar to ETH and BTC.

Gas is a unit of measurement for the amount of energy necessary to carry out bitcoin transactions on the blockchain. Gas must be paid every time you purchase an asset, transmit ETH, or set up a smart contract in order for the transaction to be completed.

GPU – A graphics processing unit is required to mine some kinds of cryptocurrency, like Ethereum.

Hashrate is a metric for how quickly your GPU can mine crypto coins.

ICO (Initial Coin Offering) — Think of it as a sale of digital assets by a corporation to early adopters.

KYC – You know those awful new user forms where they ask for your name and every piece of personal information you have? It’s just something that blockchain firms do to comply with KYC requirements. Know Your Customer is another name for it.

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Miner — A person who mines coins on a blockchain network using their GPU.

The process of solving cryptographic challenges is known as mining. The first person to solve it receives freshly generated tokens in addition to adding the current block to the blockchain.

Minting – There are two kinds of minting: When an asset developer determines who may produce 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.

Consider minting to be the process of making something new.

The number of times you can mint or produce tokens is called the minting interval.

Non-Fungible Token (NFT) is a term that refers to a token that is not fungible. It’s a one-of-a-kind, unique digital asset kept on a blockchain. It cannot be replaced by any other token or coin.

Noncustodial Wallet — Think of it as an online wallet that you manage with private keys saved locally on your computer. MetaMask, for example, is a browser plugin that allows you to run Dapps in your ordinary web browser (instead of a centralized app).

Noob – Someone who is unfamiliar with blockchain technology and has no idea how it works.

Nuclear NFTs are uncommon collectibles with over 1,000 owners on occasion. You can’t send them to anybody without first getting their permission, since each transaction requires you to ask everyone on the list whether it’s acceptable. If the NFT is not allowed to be exchanged even once, it will never leave its original wallet.

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

Permanent Records – Because the Ethereum blockchain maintains digital collectibles indefinitely, your crypto collectibles will never vanish until you erase them from the ledger yourself.

Think of a private key as a password that is distinct from usernames or email addresses. It allows you to access information or digital assets stored on blockchains. On Etherscan, you can always see your public address, but to access wallets or assets on the blockchain, you may need to utilize a private key.

Proof of Stake (PoS) – Another method used by crypto projects to verify transactions, in which you are rewarded with tokens if you keep them for a certain length of time. This procedure, like mining, requires the use of some computational power and energy.

Proof of Work (PoW) is a method of validating transactions in which miners must solve hashing issues in order to complete their tasks. This strategy makes it tough for hackers to get into the network since they’d require more than 51% of the world’s computer power to do it.

Public Key – A cryptographic key that enables others can access your wallet or NFTs, similar to private keys. The difference is that it isn’t necessary to keep it hidden. It’s shown in public places so that the blockchain knows who you are and what your tokens may be used for.

QR Code — If you have a mobile wallet that allows you to scan QR codes, this is the simplest method to transmit NFTs or Ethereum since all you have to do is scan a code and validate everything before tapping “send.”

Quantity – This refers to the number of units of a certain item that are available.

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Rarities – On the Ethereum blockchain, items with varying rarities are allocated a number. They’ll be designated “Legendary” or “Mythic” and have unique IDs and information.

Re-Mint — On a blockchain, minting coins or tokens entails giving away digital wallets’ private keys, which are secured permanently and can only be destroyed or transferred by the wallet’s original owner.

Ring Signature — A sort of transaction that only informs the sender that someone signed it but not who signed it, preventing them from spending cash until another signer also approves.

Satoshi – The smallest unit of Bitcoin (0.00000001 BTC) is called after Satoshi Nakamoto, the original blockchain developer who is credited with establishing Bitcoin anonymously.

Seed Hash — A 32-byte random value that may be used to create new public and private keys.

Smart Contract – An agreement between two or more parties that automatically executes under specified circumstances. They’re immutable, irrevocable, and unchangeable since they’re enforced on the blockchain network.

Solidity is an Ethereum-based crypto token smart contract programming language. It stands for “Secure Interoperable Datamarketplace,” and it’s what this language accomplishes when individuals create new NFTs on the blockchain, including graphics and 3D models with information to explain each asset’s unique history or tale.

Staking is the act of storing tokens in a wallet for a certain period of time. As long as other stakers are also participating, the more locks you lock up, the more chances you have to win a prize. This is most common on Proof-of-Stake blockchains, where users stake their tokens and are compensated every few seconds or after a set number of blocks are processed.

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

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

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