In this NFT terminology guide, we break down complex NFT terms for your understanding.
Decoding NFT Terminology: A Guide to Key Concepts and Definitions
Are you someone who cannot differentiate between bear and bull markets? Worry not. In this blog, we break down key NFT terminologies to help you embrace the digital economy. NFT terminologies are technical words or slang investors use in everyday life. For example, 'minting' means publishing an NFT on the blockchain.
If you recently joined the bandwagon, chances are you will be overwhelmed by so many new terms and acronyms. Understanding these terms is critical to navigating through the space.
What Is an NFT?
NFT stands for non-fungible token. NFTs are unique cryptographic tokens on the blockchain. NFTs are unique and cannot be replicated. No two NFTs are similar. They represent a real-world object, for example, an artwork. NFTs are traded over platforms called NFT marketplaces. OpenSea and Rarible are examples of NFT marketplaces.
Common NFT Terms You Must Know About
Blockchain: Blockchain is a decentralized and distributed database network that stores crypto or NFT-related transactions. Transactions stored on the blockchain are immutable.
1:1 Art: 1:1 Art is a one-of-its-kind NFT that exists in only 1 edition.
Smart Contracts: Smart contracts are programs stored on the blockchain. These programs auto-execute if pre-determined conditions are met.
DAO: DAO refers to a decentralized organization responsible for governance within a blockchain network.
Tokenization: Tokenization refers to the conversion of something valuable into a digital token stored on the blockchain and tradeable.
Minting: Minting refers to publishing your NFT on the blockchain after creation, to sell it in auctions.
Airdrops: Airdrop means distributing free NFTs or tokens to early adopters to increase awareness.
Blue Chip: Blue Chip projects are popular crypto or NFT projects that are comparatively stable.
Bridge: A bridge is a connection that facilitates cross-chain transactions and interoperability.
10k Project: A 10k project is an NFT collection with 10,000 unique pieces.
Ape-in: Ape-in means buying a token mindlessly or in haste, without due diligence.
Burn: Burn means removing a token or NFT from circulation to reduce supply.
Gas fees: In a blockchain, gas fees are the fees you must pay for any transaction.
Real-World Examples of NFT Terms
Bridge: You can seamlessly move tokens between the Ethereum and Matic ecosystems through the Polygon-Ethereum bridge.
10k Project: The CryptoPunks NFT collection from 2017 is one of the most popular 10k collections out there.
Burn: Binance burns its BNB tokens every quarter through an auto-burn formula to limit the supply to 100 million BNB.
Blockchain: Ethereum is one of the oldest and most widely used blockchains. It was launched in 2013.
Blue Chip: Popular NFT projects like CryptoPunks are called blue chips due to their stability.
Also read, 5 Free Tools To Create NFTs Without Coding
As a community manager or NFT marketer, your primary job is to increase awareness and grow your community. To do so, you must get acquainted with everyday NFT terminologies.
You can use different platforms like Twitter, Discord, and Telegram to reach a wider audience. Or, you can use platforms like Blaze to understand your Web3 audience better and integrate community management for maximized ROI.