NFT Glossary: Every Buzzword in One Place – Part 1

The NFT market is gaining traction as new use cases emerge across various industries, including entertainment, automobiles, and the metaverse, among several others. As a result, many people are drawn to learning about the relatively new technology that is NFT.

As a blockchain and crypto marketing agency, AmaZix has devised several strategies to make the journey into the NFT space easy, especially for beginners. We believe one of the first steps to take when diving into the NFT space is to become familiar with all of the frequently used terms. Therefore, we have curated and explained some of the formal NFT terminologies you may encounter in the space alphabetically. If you are a newbie, this is especially for you, so sit tight and read on.

A

Airdrop: In the crypto world, an airdrop is a marketing tactic in which a crypto project distributes its native coins or tokens to the wallet addresses of early adopters to promote the product and raise awareness among potential users.

AmaZix: This is the name of a prominent blockchain and crypto marketing agency that offers a wide range of services, including community management, brand development, crypto coin listing, and blockchain public relations, among several others.

Ape In: This refers to the act of heavily investing in a relatively new project, usually out of fear of missing out (FOMO).

Avatar: Used interchangeably with PFP project, an avatar project refers to a collection that consists of a few thousand NFT’ avatars’ such as CryptoPunks, Bored Ape Yacht Club, and Cool Cats. An avatar is a 3D representation or depiction of a real-life person or fictional character.

B

Beeple: ‘Beeple’ is the pseudonym for Mike Winkelmann, the creator of one of the most famous NFT items. Beeple’s Everyday: The First 5000 Days sold for $69,400,000 to become the most expensive one-off NFT. The sale of this NFT piece also triggered massive interest in the NFT Space.

Blockchain: This is a distributed, immutable public ledger that makes it easier to record transactions and track assets in a corporate network. Blockchain is popular for powering several crypto assets and is also used across other sectors, including ICT, Agriculture, Health, Marketing & Advertisement, etc.

Blue Chip: This term refers to popular projects or tokens with high market stability levels. An example of a blue-chip NFT project is CryptoPunks by Larva Labs.

Bot: Short for robots. Bots are programs that automate an otherwise tedious process to enable swift operation. Think of a trading bot, for instance.

Bridge: An NFT bridge is essentially responsible for enabling interconnectivity between two different networks or marketplaces and allowing the transfer of NFT tokens or data between them.

C

Community: In the crypto world, “community” refers to a group of people who use a crypto project and have or share common interests.

Community Designated Seller (CDS): This set of people are known for creating wallet addresses for specific purposes and fees for those who may be willing to sell their assets.

Collectible: This is another term used to describe NFT items because they are primarily pieces of digital artwork intended to be auctioned for profit or archived.

Crypto: Not necessarily a digital currency as many are made to believe; the term “crypto” refers to any digital product built using cryptography (i.e., encryption) as an underpinning technology.

D

Delist: This term describes the cancellation of an already listed NFT in an open market.

Discord: This is one of the several social media networks that most crypto communities use as a meeting point. Discord is a group-chatting platform initially designed for gamers but has since grown into a platform for other kinds of communities, particularly NFT initiatives.

Degen: 

Derivatives: refer to capital-efficient trading instruments that get their value from other assets. While an NFT might not necessarily be a derivative, the token they are listed for (let’s say BTC, ETH, or SOL) may be derivative.

Diamond hands:  People who keep an asset despite price volatility, negative news, low market sentiment, and FUD are referred to as diamond hands. This group wants to sell its assets when the price is exploding.

Doxxed: This is the act of publicly disclosing private information about an individual (presumably a whale) to spread negative sentiment about the individual such that it negatively influences the value of the crypto asset they hold.

Drop: This refers to the date and time when a specific NFT collection will go live on an NFT marketplace or other auction venues and for a predetermined price at which investors can purchase them.

Dutch Auction: This is a bidding technique adopted by some NFT marketplaces that consider all bids for a given asset before arriving at a selling price.

E

ENS: Acronym for Ethereum Name Service, a distributed, open, and extensible naming system based on the Ethereum blockchain.

ERC-721: This is an Ethereum token standard dedicated to developing NFT projects. NFTs, unlike traditional cryptocurrencies, are non-interchangeable, so creating one necessitates using a token standard with the non-interchangeability attribute. This is also the token standard adopted in the creation of most of the current NFTs.

Ethereum: This is the name of the second largest cryptocurrency after Bitcoin. It is powered by the Ether token and enables users to build thousands of decentralized applications to make transactions or earn interest on their assets. Most NFTs transactions are done on the Ethereum blockchain.

Etherscan: This is a block explorer and analytics platform for Ethereum-backed applications. It is usually used to verify balances, hash addresses, transactions, check the value of any digital collectibles, and so much more.

Exchange: This refers to a platform where people can visit to buy, sell or trade various crypto assets, including NFTs.

F

Farm: This is the method of lending or staking cryptocurrency in exchange for interest or other rewards, usually in transaction fees or interest. 

Flip: The term ‘flip’ is used in the crypto or NFT market to describe a situation in which a trader purchases a digital asset at a listed price, intending to swiftly sell it for a slightly higher price within a short trade window.

Floor Price: An NFT floor price is the lowest price at which an NFT in a specific collection or project can be purchased.

Fractional Ownership: As the word “fractional” implies, this describes partial ownership right in an NFT. Numerous people can own an NFT, and each can sell a share of the entire NFT item or collection.

FUD: Acronym for Fear, Uncertainty, and Doubt. These are popular traits found among beginners or investors with low-risk appetites.

Fungibility: This term refers to the interchangeability attribute of a crypto asset. It implies that a token can be replaced by a replica or a unit of the same.

Fungible Token: Unlike NFT, fungible tokens are interchangeable and can be replaced by one another. A good example is Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)

G

GameFi: This is an acronym for the combination of ‘gaming’ and ‘decentralized finance.’ GameFi implies that players can play for financial rewards (usually in cryptocurrency or NFT tokens).

Gas: The term ‘gas’ is used instead of ‘transaction fee’ to refer to the deductible fees payable to a crypto platform or NFT marketplace for minting or purchasing a digital asset.

Generative Art: This refers to art developed in whole or part using an autonomous system. As such, owners can upgrade the feature of the artwork independently with little or no human intervention. Prominent examples of generative arts include Bored Ape Yacht Club, Cool Cats, and Pudgy Penguins, launched recently.

Governance Tokens: Most crypto projects replace centralized authority with a governance system, which requires participants to hold the project’s native token. This native token functions as a governance token and comes in different forms, including cryptocurrency and NFTs. Essentially, a governance token gives the holder voting power.

GPU: Acronym for Gaming Processing Unit, a hardware device used for heavy-duty crypto mining.

H

Hash Address: People receive transaction receipts in traditional centralized finance; however, in the crypto or NFT market, a hash address known as transaction ID (TxID) is used. The unique address holds the transaction details recorded on a blockchain, such as when you mint or sell an NFT art.

Hashrate: This is a crucial indicator for measuring the computing power required to process a transaction in a blockchain network. 

Hashmask: This is one of the most famous NFT pieces. Suum Cuique Labs’ HashMasks is a digital art collection with 16,384 unique pieces developed by 70 foreign artists over two years before it was officially released in Switzerland on January 28, 2021.

I

ICO/ITO: Acronym for ‘Initial Coin Offering’ and ‘Initial Token Offering.’ Both acronyms refer to a public event during which the native token of a crypto or NFT project is made available to anyone interested. It is a common phenomenon among most crypto projects that use native assets.

IGO: This acronym, ‘ Initial Game Offering,’ is widely used among GameFi projects and refers to a publicized event in which the project offers up its native token for public access.

J

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