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NFT Glossary

NFT Glossary

From cartoons, such as Bored Ape by Yacht Club (BAYC), to videos like Charlie Bit Me, non-fungible tokens (NFTs) have exploded in popularity. And with sales reaching $25 billion in 2021, NFTs have become a part of popular culture that is set to continue in 2022.

However, are you curious about NFTs but struggling to understand the terminology? Start your NFT journey today and read our 88-word glossary:

Airdrop – Automatically receiving cryptocurrency or a new NFT for free.

Apeing – Buying something in an irresponsible manner.

Avatar Project – A collection of a few thousand NFT avatars.

Beeple – Alias for Mike Winkelmann, perhaps the most well-known digital artist.

Binance Smart Chain – A blockchain compatible with buying and selling NFTs.

Bitcoin (BTC) – Cryptocurrency that’s used when you buy or sell NFTs.

Blockchain – An open spreadsheet that records any changes or transactions.

Bridge – Moves tokens from one blockchain to another for a fee.

Burn– Gets rid of a NFT and destroys tokens so they’ll no longer be transferable.

Burn Minting – NFTs become locked forever and are no longer destroyable or transferrable.

Burst – These are NFTs you want to buy, also known as assets on the market.

Community Designated Sellers (CDS) – People who set up their addresses with specific purposes and fees for others looking to sell their assets.

Crowdsales – When companies creating a NFT project have a pre-sale. The tokens purchased go to investors and those who have been around from the beginning.

Crypto – This is another name for cryptocurrencies.

Cryptocollectibles – Blockchain assets that aren’t tradable because they represent one-of-a-kind digital items.

Cryptocurrency – A type of digital currency that uses cryptography to secure financial transactions and control the origination of new coins.

CryptoKitties (CAT) – One of the most popular NFTs on Ethereum.

CryptoPunk – A unique collectible avatar which is among the most expensive NFTs ever sold.

Dapps – Crypto project apps that run on decentralized networks.

Decentralized Autonomous Organization (DAO) – When all owners have voting rights and control over the future actions and overall direction of the project.

Decentralized Exchanges (DEX) and Decentralized Finance (DeFi) – Exchanges and finances through peer-to-peer transactions instead of a third party.

Diamond Hands – A person who holds on to an asset through price volatility, negative news and poor market sentiment.

Discord – An instant messaging platform and the go-to place for discussing NFTs.

Drop – Where users receive free tokens for holding onto certain types of assets.

ERC-20 – Used to mint fungible tokens.

ERC-721 – Allows for the creation of unique, non-fungible tokens.

Ether – An altcoin with its own blockchain that runs on the Ethereum blockchain.

Ethereum (ETH) – The main blockchain platform that stores all NFTs.

Etherscan – The most popular block explorer to check the worth of digital collectibles.

Exchange – Used to trade crypto assets and buy with credit cards.

Farm – Uses GPU to mine tokens and joins mining computers together on the blockchain.

Fear, Uncertainty and Doubt (FUD) – Describes negative, inaccurate or false news stories about NFTs.

Fiat – The name for currencies like GBP, Euro and USD.

Floor price – The lowest price in any given category of NFTs.

Flow – A blockchain created by Dapper Labs that’s custom-made for games and collectibles.

Fungible Tokens (FT) – Interchangeable, tradable tokens, such as ETH and BTC.

Gas – An amount required to perform cryptocurrency transactions on the blockchain.

Gas fees – Fees that blockchain users pay to compensate for the computational resources used to execute transactions.

Gas War – Increasing gas fees to outbid others.

Generative Art – One of the key innovations in digital art and collectibles in recent years.

GPU – This is a graphics processing unit, which is needed to mine certain types of cryptocurrencies.

Hashmasks – Digital paintings made by a global team of 70 artists.

Hashrate – The speed GPU can mine crypto tokens.

Initial Coin Offering (ICO) – Where a company sells digital assets to early adopters.

InterPlanetary File System – Stores NFT data and is considered superior to storing on an URL.

Know Your Customer (KYC) – A form for new users.

Metadata – The collection of data that defines ownership and differentiates one NFT from another.

MetaMask (MM) – A wallet used as a gateway to NFT apps.

Metaverse – A virtual 3D world where people can interact, such as buying and selling land as NFTs.

Miner – A person who uses their GPU to mine tokens on a blockchain network.

Mining – This is the process of solving cryptographic problems.

Mint-A-Token – When an asset creator chooses who can create tokens or NFTs.

Minting – The process by which an NFT becomes part of the blockchain.

Minting Interval – This is how often you can mint or create tokens.

NFT – A unique, one-of-a-kind digital asset, stored on a blockchain.

Nuclear NFTs – Rare collectibles with over 1,000 owners that need permission to send.

Nifty Gateway – A popular NFT marketplace owned by Gemini, a cryptocurrency exchange.

Noncustodial Wallet – An online wallet that you control using private keys stored in your own computer.

Noob – Someone who’s new to blockchain and doesn’t understand how it works.

Off-Chain and On-Chain Metadata – Metadata that is stored outside the blockchain or is directly incorporated in a smart contract.

OpenSea (OS) – The first and largest NFT marketplace with four million assets.

Paper Hands – Someone who sells something at what is perceived by others as too low of a price.

Peer To Peer (P2P) – A person-to-person transaction that doesn’t go through an exchange.

Polygon – An Ethereum-compatible protocol that provides cheaper, faster and more secure payment transactions.

Profile Picture Project (PFP) – The same as a 10k project or an avatar project.

Proof of Stake (PoS) – This is one way of verifying transactions.

Proof of Work (PoW) – Another way crypto projects verify transactions.

Rarible – A community-owned NFT marketplace founded in 2020.

Rarities – Items with different rarities get assigned with a certain number on the Ethereum blockchain.

Re-Mint – Minting coins or tokens on a blockchain means giving out digital wallets’ private keys so they’re locked forever.

Reveal – Art that only reveals itself after it’s purchased.

Ring Signature – A type of transaction that only lets the sender know someone signed it but not who.

Royalties – Money earned by an NFT creator through the token’s resale.

Rugpull – A scam where the people behind a seemingly legit project disappear with all the money immediately after launch.

Satoshi – The smallest unit of Bitcoin.

Seed Hash – A 32-byte random value that regenerates public and private keys.

Smart Contract – An agreement that automatically executes between two or more parties under certain conditions.

Snapshot – Determines who’s eligible for an airdrop.

Solidity – A programming language for Ethereum-based crypto token smart contracts.

Staking – The process of locking up tokens in a wallet for a certain amount of time.

Sweep – Buying up several of the cheapest NFTs in a collection on the secondary market.

Tokenomics – The branch of economics that deals with the design, issuance, trading and regulations of crypto tokens.

Tokens – Digital assets that allow people to raise money for projects through crowdfunding or ICO protocols.

Utility-Focused NFTs – NFTs with real-world use cases.

VeeFriends – An NFT project launched by entrepreneur Gary Vaynerchuk.

Wallet – Where tokens live while they’re not in use.

Whale – Someone with a lot of money, either available to invest or already invested in a high-value NFT project.

Zed RunA digital platform where users can race, trade and breed NFT racehorses.

Interested in learning more? Please get in touch on +44 (0)800 002 9400 or at hello@creationagency.com with any questions.