Estimated reading time: 10min
Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.
We know that when you first enter the NFT world, you may encounter obstacles everywhere, and you may feel confused.
So, Hubbleverse is here, Hubble Metaverse brings you the NFT collection!
This is a must-have introductory guide for NFT people, which contains many NFT terms you need to know. From NFT novice to NFT master, let this article be your starting point to enter the NFT world!
We know getting onboarded to the NFT world can be daunting. That's why we've put together the NFT Dictionary.
This is a living document that captures all the terms you'll need to know to go from NFT to NFT enthused. With this in mind, remember that this document is for you.
Blockchain – Blockchain
Blockchain is a distributed database used to securely store data and information in a publicly accessible manner. Rather than relying on a single centralized server, blockchain-powered cryptocurrency networks store data on distributed devices (nodes) around the world.
Ethereum – Ethereum
Due to its size and security, Ethereum is the main blockchain used in the Web3.0 ecosystem. It is the most popular blockchain for NFTs for the same reason.
Blockchain
Blockchains are distributed databases used to securely store data and information in a publicly accessible way. Rather than relying on a single centralized server, blockchain-powered crypto networks store data across distributed devices (nodes) worldwide.
Ethereum
Ethereum is the primary blockchain used in the Web3 ecosystem due to its size and security. It's the most popular blockchain for NFTs for the same reason.
NFT – Non-Fungible Token non-fungible token
NFT is a digital token of information (data) that exists on the blockchain. Each NFT has its own identification code and metadata. Therefore, NFTs are unique and non-fungible, that is, they are "irreplaceable/unforgeable." For more details, please click here to read Hubbleverse’s previous post What is NFT? You don’t know it yet!
NFT Roadmap – NFT Roadmap
The NFT project roadmap is a bit like an investment deck. It is a document that describes the goals, milestones and strategies of the NFT and is used to convey the value and utility of the project.
Gas Fee – Mining fee
Gas fee is a fee paid by individuals to complete transactions on the blockchain and is used to compensate blockchain miners for the computing power they must use to verify blockchain transactions.
NFT
An NFT is a digital token of information (data) that lives on a blockchain. Each NFT has its own identification code and metadata. As a result, NFTs are unique and non-interchangeable ie, they are “non-fungible”. For more information, click here What is an NFT? You don’t know it yet!
NFT Roadmap
An NFT project roadmap is a bit like an investment deck. It's a document that maps out the goals, milestones, and strategies of an NFT project to communicate the project's value and utility.
Gas Fee
A gas fee is the payment individuals make to complete a transaction on a blockchain. These fees are used to compensate blockchain miners for the computing power they have to use to verify blockchain transactions.
Gas War – Gas War
Gas wars occur when users compete over whose transactions will get priority in the next block of the blockchain. Gas wars are common during popular NFT drops, as there are many people competing for a limited supply of NFTs.
Mint – Mint
Simply put, minting is the act of adding, verifying, and recording NFTs on the blockchain. Once minted, the NFT is available for public consumption and can be viewed, purchased, and traded on the open market. For more details, please click here to read Hubbleverse’s previous article I heard you are interested in Writing NFT?
1/1 – Unique
A one-of-a-kind piece of art or NFT is completely exclusive and a second one will never be manufactured.
Gas War
A gas war happens when users compete over whose transaction gets priority in the next block of the blockchain. Gas wars are common during popular NFT drops, as many people are competing over a finite number of NFTs.
Mint
In simple terms, minting is the act of adding, validating, and recording an NFT to the blockchain. Once minted, the NFT is available for public consumption and can be viewed, bought, and traded on the open marketplace. For more information, click here I heard you are interested in Writing NFT?
1/1
A one-of-one artwork or NFT is completely exclusive, never to be made again.
Limited Edition – limited edition
For limited edition NFT collections, the number of NFTs that can be minted is limited. Many limited edition collections include 10,000 editions.
Open Edition – Open Edition
For open version NFT collections, any number of NFTs can be minted. However, don’t confuse “open” with “infinite”, many open version NFTs limit the time period during which coins can be minted.
PFP – Profile Picture
Profile picture (PFP) NFT is a digital token or artwork used as a personal social media avatar. Many of the world's popular NFT collections, such as CryptoPunks and Doodles, are PFP.
Limited Edition
A limited edition is an NFT collection in which there are a finite number of NFTs available to be minted. Many collections consist of 10,000 editions.
Open Edition
An open edition is an NFT collection where any number of items can be minted. However, don't confuse “open” with “unlimited.” Many open editions are only available to mint for set periods of time before they're gone.
PFP
A profile picture (PFP) NFT is a digital token or artwork that is designed to be displayed as a person's social media profile picture. Many of the world's most popular NFT collections (like CryptoPunks and Doodles) are PFPs.
Floor Price – base price
The base price of an NFT collection is the lowest listing price of the entire series. The value of a collection is usually determined by its reserve price.
Whitelist – Whitelist
Users in the whitelist have the right to purchase NFT collections in advance before the project is made public. Whitelisting, which serves as a way to attract the masses before a public release, is usually smaller and consists of a carefully selected group of users by the NFT creator.
Art Reveal – Unveiling of Artwork
The unveiling of the artwork is often the most exciting moment for the release of an NFT collection. After a period of waiting, the holders and the public can finally see the special artwork they minted.
Floor Price
The floor price of an NFT collection is the lowest listed price in the entire collection. The value of a collection is often dictated by its floor price.
Whitelist
A whitelist is a group of users who are given early access to purchase an item from an NFT collection before the project is publicly available. The whitelist is usually small in size, with a select group of users who are handpicked by the NFT creators as a way of generating interest before the public mint.
Art Reveal
The art reveal is often the most exciting moment in an NFT collection launch where, after a period of waiting, holders and the general public can finally see the specific artwork they've minted.
Airdrop – Airdrop
Airdrop refers to the distribution of NFTs or tokens directly to users’ wallets, usually for free. Exclusive airdrops are sent to holders of specific NFT collections or cryptocurrencies as a thank you for their loyalty. Airdrops are a great way for blockchain projects to attract new users or incentivize existing users.
Hot Wallet – Hot wallet
A hot wallet is an online digital wallet that is connected to the blockchain and allows you to store, send, and receive coins. With an internet connection and your private key, you can access it from any device, anywhere in the world. Because they are connected to the Internet, hot wallets are often insecure and vulnerable to hacker attacks. MetaMask is a hot wallet.
Cold Wallet – cold wallet
A cold wallet is a more secure, offline storage cryptocurrency wallet. Cold wallets include paper wallets and hardware wallets. A hardware wallet is a physical device, and many hardware wallets look a lot like USB flash drives.
Airdrop
Airdropping is the process of distributing NFTs or coins directly to users' wallets, often for free. Exclusive airdrops are sent to holders of a specific NFT collection or cryptocurrency as thanks for their loyalty. Airdrops are a great way for blockchain projects to attract new users or reward existing ones for their support.
Hot Wallet
A hot wallet is a digital wallet that is kept online. It's connected to the blockchain, allowing you to store, send, and receive tokens. It can be accessed from any device, anywhere in the world, as long as you have an internet connection and your private keys. Since they are connected to the internet, they tend to be less secure and subject to hacking. MetaMask is an example of a hot wallet.
Cold Wallet
A cold wallet is a more secure kind of cryptocurrency wallet that is stored offline. Examples of cold wallets include paper wallets and hardware wallets. Hardware wallets are physical devices, many of which look like USB drives.
Royalty – Royalty
Royalties are a set amount of money a person receives for owning, creating, or licensing a work. Whenever someone sells their work in the NFT market, the creator receives a secondary royalty or a predetermined percentage of the sales price.
Smart Contracts – smart contracts
A smart contract is a computer program that exists on the blockchain. It is controlled by basic "if/when…then" statements. For example, "If 'a' (event) occurs, then perform step 'b'." Once these predetermined conditions are met, the transaction is automatically executed and recorded on the blockchain.
Decentralized Applications – Decentralized applications
Decentralized applications (dApps) are just like any other website or application you use, except they are built and run on a decentralized network, such as the Ethereum blockchain.
DAO – Decentralized Autonomous Organization decentralized organization
A DAO (Decentralized Autonomous Organization) is an organization that runs on the blockchain through the use of smart contracts. For more details, please click here to read Hubbleverse’s previous post on how to launch the perfect DAO for the Web 3.0 world.
Royalty
A royalty is a set amount of proceeds that one receives in exchange for owning, creating, or licensing a work. Many NFT creators receive secondary royalties or a predetermined percentage of the sale price every time their work is sold on an NFT marketplace.
Smart Contracts
A smart contract is a computer program that lives on the blockchain. It is governed by rudimentary “if/when…then” statements. For example, “if 'a' happens, then execute step 'b.'" Once these predetermined terms are met, the transaction automatically executes and is recorded in the blockchain.
Decentralized Applications
Decentralized Applications (dApps) are just like any other website or application you use, except that these applications are built and run on top of a decentralized network, like the Ethereum blockchain.
DAO
A DAO (a decentralized autonomous organization) is a type of organization that is run on the blockchain through the use of smart contracts. For more information, click here How to launch the perfect DAO for the Web3.0 world.
P2E – Play-to-earn
Play-to-earn (P2E) is an online game where players earn utility tokens through excellent performance in the game.
Metaverse – Metaverse
The Metaverse is defined as the fusion of reality and virtual reality – as a digital extension of the real world.
Discord – Communication software
Discord is a voice, text and video instant messaging platform. Users can talk and share files in private messages or in more public communities called "servers." Each server can contain multiple chat rooms.
P2E
Play-to-earn (P2E) is a type of online game where gamers are awarded utility tokens for successful game performance.
Metaverse
The metaverse is best defined as a blending of physical and virtual reality — as a kind of digital extension of the real world.
Discord
Discord is a voice, text, and video instant messaging platform. Users can converse and share files in private messages or in more public communities called “servers.” Each server can contain a number of chat rooms.
CC0 – Creative Commons Zero Creative Commons License
Creative Commons Zero (CC0) is the most liberal form of copyright protection, in which creators must waive any copyright protection and allow the public to use, adapt, or profit from their work.
Staking – Equity pledge
Cryptocurrency staking is the process of locking proof-of-stake cryptocurrency in a wallet or exchange for a set period of time in exchange for interest rewards. The longer the cryptocurrency is locked, the greater the reward.
On-Chain – on the chain
On-chain refers to digital tokens that exist on the blockchain. The term is also used to refer to any transaction or interaction with a token or contract on the blockchain.
CC0
Creative Commons Zero (CC0) is the most liberal form of copyright protection in which creators must forgo any copyright protection and allow the public to use, adapt, or profit off of their work.
Staking
Crypto staking is the process of locking up a proof-of-stake cryptocurrency in a wallet or exchange over a set period in return for interest rewards. The longer the crypto is staked, the greater the reward.
On-Chain
On-chain refers to a digital token that lives on a blockchain. This term is also used to represent any transaction or interaction with a token or contract on the blockchain.
