NFT Terms you must know

All our lives, we have been taught a singular way to speak and a way to write, but now there is a need to refresh it because, honestly, it has been getting boring. A for apple is from the ages of Adam; now A is for Airdrop. Jokes apart, there is a flurry of words that have taken over the ecosystem, and one needs to search for some terms and get hold of the meaning. Well, your search ends here; here is a list of terms you might be looking for.

A

Airdrop – Meet a few requirements, participate in an event, or check the conditions you need to meet so that you may get an Airdrop. It is that easy, and an NFT is distributed to an individual mainly because the firm wants to promote its products, features, or just the company.???

Avatars - A customizable representation of yourself found digitally is what an avatar is. It is more expressive, interactive, and fun than a normal display picture as it is a 2D/3D hyper-realistic being. There are largely 2 types: - 1) VR Avatar, 2) Full Body Avatar.

Ape In – going all in a while investing in a cryptocurrency due to a trend, suggestion, or gossip is known as Apeing or Ape In.

Altcoin – an alternative cryptocurrency that anyone can buy. These are coins that are listed other than Bitcoin in the market. At the time of writing, there are over 20,000 cryptocurrencies in circulation.

B

Burn- If someone willingly destroys a digital asset, it is known as burning. Some projects burn and crash in the market, and to protect the asset's value, teams decide to burn the remaining number of the assets.

Bozo- When someone invests in the wrong project, gets scammed, purchases the wrong project, or finds themselves in a bad position, that’s when they use this term known as a bozo.?

Bagner- in medieval times, a sneeze was spelled with an f, fneze! Similarly, Bagner originated from a misspelled tweet from a user that went on to gain fame; this resulted in the creation of an NFT of this term. Bagner is used to describe something good. Wait for a few years, and it might even replace Banger.

Bags- This term is used when a large quantity of the same cryptocurrency is held in an individual's portfolio.

Block- A unique code and information about the transaction is stored in the form of a hash; this collection of data is added to a blockchain. The unique code identifies and associates it with the previous block.

C

Clean- A single NFT that has positive traits is known as a clean NFT, this establishes the nature and trust of the digital asset.

Crypto- This term is used to denote that a transaction is governed by cryptography.

Collectibles- Rare items sought after by people are known as collectibles. Limited edition NFTs are usually limited and sell for substantial amounts.?

Cold Wallet- A wallet in which you can store your NFTs and crypto; this facilitates security as cold wallets are stored offline, as opposed to hot wallets that are purely based online.

D

DAO- Operating on a decentralized platform, DAO is governed by rules encoded rather than a central authority.? DAOs are democratic and maintain a level of transparency, it combines the qualities of socialism, equitability, and innovation and provides it for all the members involved.

Degen – this is a term used for people who take high risks in buying and selling NFTs. They are a group that is into random projects.

Digital Twin- A tangible process or physical system converted into the same digital representative is known as a digital twin. Many critical sectors like healthcare, manufacturing, and construction are using it to improve operations.

E

ERC - Ethereum Request for Comment. A series of values is used to generate and issue tokens and implement software variations compliant with the Ethereum network. ERC-20, ERC-721, and ERC-1155 are some of the most famed ERC token standards.

EVM - Ethereum Virtual Machine. A software platform that performs and runs innovative bonds on the Ethereum blockchain.

F

Flex - A word used to define the ability to modify and alter NFTs after they have been created. Flexibility is a vital aspect of NFTs as it allows for superior creativity and uniqueness.

FOMO - Fear Of Missing Out. A feeling of anxiety or unease caused by the fear of missing out on a potentially profitable opportunity.

FUD – the term denotes Fear, Uncertainty, and Doubt. A strategy used to create fear and doubt about a contending product or technology.

Floor price - the lowest possible price at which you can buy an NFT from a specific project on the secondary market.

G

Gas fees - A fee paid to miners on the Ethereum network to process transactions and smart contracts.

Gamification - The process of adding game-like elements to non-gaming environments to increase rendezvous and motivation.

Generative Art - algorithmically created art through the use of code and computer software.

H

Hash - The term hash states the yield formed by a hash function after a portion of data is submitted (mapped) through it. Other than merely hash, the output created by hash functions may also be mentioned as a hash value, hash code, or digest...

Hologram - A digital image that seems three-dimensional and can be seen from different angles. It is used for many purposes, like advertisements and instructional videos.

Hodl – Just like the word banger was misspelled, the word hodl came into existence for "hold," used in the cryptocurrency community to express the idea of holding onto assets for an extended period of time. You should know by now that people in the metaverse are quite quirky.

I

Interoperability – This word is important when you understand the ecosystem of NFTs, the capability of different blockchain networks to communicate and interact with each other. It empowers the transfer of virtual assets across platforms, creating a metaverse economy.

?

IPFS - InterPlanetary File System. A peer-to-peer storage network that permits easy sharing and tracing of files.

Immersiveness - The level of engagement and immersion experienced in a virtual atmosphere, such as the metaverse.

L

Liquidity pool – A term used when a crowd-sourced collection of cryptocurrencies or tokens is locked in a smart contract to enable trades between the assets on a decentralized exchange.

Lurkers - Members of a decentralized autonomous organization (DAO) who look and listen to all the activities but do not actively partake.

M

Metaverse – The buzzword we are all here for refers to a convergence of various technologies, such as virtual reality (VR), augmented reality (AR), and mixed reality (MR). In many ways, the Metaverse is the Internet itself or, at least, its future embodiment of the Internet.

Mining - The progression involves solving cryptographic problems to verify and add new transactions to the blockchain for a cryptocurrency that uses the proof-of-work (PoW) method.

Metazens - Individuals who are enthusiastically engaged in the Metaverse daily.

N

?

NFT – Most probably, you know about this if you are reading this piece, NFTs are Non-Fungible Tokens. An exclusive digital asset that cannot be replicated or substituted.

Non-Custodial Wallet - A digital wallet that gives the operator sole control of their private keys.

?

O

Off-Chain Metadata - Information that is not stored in blockchain or transactions that materialize outside the blockchain network. It is the opposite of on-chain transactions.

P

Play-to-earn- the concept of monetizing the time and effort spent on a game is known as play-to-earn. For example, Metaspace offers a game that provides various perks such as tokens or in-game currency.

PFP- Term is used to denote a profile picture on any social media platform. NFT collections are made exclusively for PFPs too.

R

Rarity - The extent of how unique and valuable an NFT is. Rarity can be determined by factors such as scarcity, eminence, and historical importance.

S

Smart Contract - Self-executing contracts with the terms between buyer and seller being directly written into lines of code and stored safely on a blockchain network.

Staking - The method of holding a cryptocurrency in a wallet to support the operations of a blockchain network. In return for staking, users receive rewards in the form of newly minted tokens, which can be vaguely related to an FD in conventional banks.

T

Token - A digital asset that is created and managed using blockchain technology. Tokens can symbolize various things, such as assets and currencies.

Transaction - The interchange of digital assets or currency between different parties on a blockchain network. Each transaction is recorded on the blockchain and is verified by network participants.

U

Utility – The degree of how useful and functional an NFT or other digital asset is. The utility can be reviewed by factors such as the asset's intended purpose and ability to solve a problem.

V

Virtual Reality (VR) - A computer-generated reproduction of a three-dimensional environment that can be interacted with in a seemingly real or physical way by an individual using special electronic equipment.

W

Web 3.0 - A term used to describe the evolution of the internet into a decentralized, more secure, and more open network. Web 3.0 technologies include blockchain, decentralized applications, and peer-to-peer networks.

X

XR – Extended Reality. A term used to refer to a combination of technologies that enable the amalgamation of physical and virtual worlds. XR includes virtual reality, augmented reality, and mixed reality.

Y

Yield - The return on investment (ROI) for holding a specific asset or engaging in a certain activity. In the context of the cryptocurrency space, yield can denote the interest earned on staked tokens or liquidity pool rewards.

Z

Zero-Knowledge Proof - A cryptographic technique that permits the verification of evidence and data without the need for the information to be revealed. This can be beneficial for preserving privacy and security in transactions and other sensitive activities on a blockchain network.