NFT ceases to be a topic exclusively for crypto enthusiasts and attracts more and more specialists from different fields. And especially for those who are just taking their first steps, we have prepared a dictionary of the main NFT terms that you need to understand in order to understand the essence of what is happening.
Free distribution of cryptocurrency, NFT, tokens, etc., as a rule, with certain conditions in the form of inviting several people to the project or performing a list of simple actions like likes and reposts in the project community.
The technology of a decentralized, that is, distributed, owned by no one and securely encrypted storage of information. In fact, just a registry with records that are stored in blocks, for example, lists of transactions can be stored there. When one block is full, a new one is created and linked to the previous one, thus forming a chain of blocks (blockchain). It is impossible to forge records due to the fact that the registry is decentralized, it is stored simultaneously on many devices. If someone has a record that does not match the rest, it is considered invalid. And also all records are encrypted with high-level cryptography.
ICO (ISO, aysio)
An initial token offering is when a company sells its tokens before they go public at a discounted price. This allows the company to attract more investments at the initial stage and there is a possibility that the price of tokens will skyrocket after going public (provided that the team issuing them creates a sufficiently attractive product involving these tokens), which is very beneficial for early buyers.
NFT (non-fungible token)
If, for example, the USDT token can be replaced with another similar USDT and there will be no difference, then this will not work with NFT. This is a unique, one-of-a-kind token, the analogue of which does not exist, and this is one of the main reasons for the value of such tokens. The second is the ability to forever leave in the digital space the indisputable fact of owning any asset in the form of a record in the same token about the transaction, the seller, the buyer and the price, because it is impossible to fake any information in the Blockchain network.
Turning an ordinary picture, gif or track into an NFT, appearing in your wallet and at the same time entering the market. “Mint NFT” actually means to be the first on the network to claim the rights to a particular piece of art.
Whitelist (WL, whitelist)
A limited list of persons, mainly partners of the project, who are guaranteed to be able to buy back the NFT of any project, since usually the number of people who want to mint exceeds the number of tokens. The conditions for getting into the whitelist for “mere mortals”, as in the case of airdrops, are very different and most often even when they are completed it is a matter of luck. At the same time, it is at least desirable to have Twitter and Discord accounts as the most popular social networks for NFT-ish players, and it is there that details about whitelists and airdrops are most often posted.
The exchange of one asset for another at a certain rate, performed between two users or between a user and an exchange.
A unit of measure for the commission for trading operations on the Ethereum network.This commission goes to the miners as a reward for providing computing power for the network, which is why it is called gas or fuel.
The lowest fixed price for items in the collection.
Pre-sale or a set of activities preceding the sale.
Long-term (a year or more) retention of the currency in the cash, based on its global growth. Hodler is a slang term for those who do not sell their coins for years, regardless of the market situation.
DeFi (decentralized finance, decentralized finance)
A set of services and applications developed using blockchain, cryptocurrencies, tokens and smart contracts. These services are integrated into a single network, offering users services that are usually provided by banks and other financial institutions. Simply put, this is a kind of alternative banking sector, the services of which can be used by people who do not want or are not able to deal with traditional financial institutions.
This is the science of ways and methods of encrypting information. It secures messages in transit and uses algorithms that have been tested in open environments to quickly detect and fix any vulnerabilities.
National fiat currencies are also called symbolic or fiat currencies because their value is not backed by a currency. metals as they once were (before the abolition of the gold standard), but is established by the state and supported only by the belief of people that they can exchange them for something valuable and they will not depreciate the next day. The cost of fiat money is regulated by the Central Bank, which controls the issue and the key rate at which it lends this money from private banks .
Printing and circulation of cash and non-cash money.
It is an alternative to fiat money. It is also provided only by the faith of people, but unlike fiat, its price does not depend on the policy of a particular state, and the emission rules are much clearer. Also, for transfers in the crypt, intermediaries in the form of banks are not required.However, the price of a cryptocurrency is very speculative (can be manipulated with its price in order to make a more profitable purchase by the organizer of the manipulation).
In fact, renting out the computing power of your computer to calculate transactions and create new records, and, accordingly, blocks within the blockchain, as well as checking the match with the old ones. That is, the network functions precisely at the expense of miners, and they, in turn, receive a reward in the form of the currency in the network in which they work. This reward often amounts to a transfer fee.
A unit of account, a certain set of characters recorded in the blockchain, is needed in order to display your digital balance in a certain asset, that is, a record of what you own and in what quantity. Tokens can be very different, they can measure the number of assets you own (tokenized securities) or services (utility tokens) and much, much more.
A program that checks whether the seller and the buyer fulfilled all the conditions during the exchange of crypto assets, if yes, it makes a deal, if not, it returns the assets to the owners. With the help of tokens and smart contracts, you can digitize any things from the real world and trade them in cryptocurrency. The clearest example of this is tokenized art - NFT, a non-fungible token, but there are others.For example, Render Token - tokenized computing power for rendering 3D graphics, sold for crypto. In fact, Blockchain is the basis for building the digital world, then tokens are its bricks that work within their network (each cryptocurrency has its own blockchain, on which tokens can already be built)
A special term for the distribution of limited resources, in this case tokens. If the total allocation, for example, is 1000 tokens, then this amount will be distributed among all participants.
A form of passive income on cryptocurrency, when the reward is charged simply for keeping the currency in the wallet. This process uses the Proof of Stake (PoS) algorithm - proof of ownership, that is, the more currency in your wallet, the greater the reward. Of the most famous, the following coins have the possibility of staking:
The main risk here is the possibility of a fall in the price of the held asset, the lower the coin rate, the less the 10%, 20% or 100% reward will be.
This is a search and open publication of personal information about a person with malicious intent. Doxing involves the presence of a hacker (doxer) who analyzes information about a person posted on the Internet in order to identify this person and then blackmail him. We advise you, if possible, not to reveal personal data on unverified sites and not to follow links from unknown people. Just because of such phenomena, links in public chats are not encouraged.
The process of placing a cryptocurrency on an exchange to start trading with other assets. Success at this stage often determines the future fate of the coin: the admission to the possibility of free conversion for most coins is both a ticket to life, a factor in attracting new investors and the subsequent increase in value and capitalization.
All cryptocurrencies, except Bitcoin. Appeared after its entry into the market, in order to overcome the technical limitations that Bitcoin has and expand the potential of blockchain technology.
For the sake of which they usually participate in ICO, when the price of an asset rises several times (for example, they say: it makes x10) from the values at which it was bought, which accordingly brings buyers a net 100%, 200%, 1000%, and so on from their investment.
User identification requirements for anti-money laundering, which are usually required by exchanges and ICOs. They can be different, but as a rule, these are passport data.
Potentially profitable asset, usually undervalued and hardly noticeable among all the others
When developers abandon the project or abandon it, while taking the money of investors.
Lots of devices with multi-accounts designed to increase the chance of minting NFTs on hands.
Buying and quickly selling an asset for a small income, which is usually repeated many times.
In NFT, this is an outstanding bonus to the author (the one who minted first) for each resale of his work, in the form of a certain percentage of the amount received by the seller.
Rarity of an item in a collection
An identical version of the main network (for example, the Ethereum network), created to test the functionality without using a real cryptocurrency.
“Fear of Missing Out”, which means “fear of missing”. Syndrome of an irresistible desire to buy a certain currency / NFT seeing its rapid growth. Usually this approach does not end well.