What does Non-Fungible mean?
Non-fungible means that something has unique properties and cannot be interchangeable with something else. In other words, it cannot be swapped for something of completely equal value. “Fungible” is an economic term that refers to a good or asset that can be exchanged for another good or asset of equal value. For instance, a dollar bill is fungible, because it can easily be swapped for another dollar bill of the same value.
What is the Blockchain?
A blockchain is a digital database that records transactions. This information is stored electronically in digital format. Ultimately, blockchain maintains a secure and decentralized record of transactions. Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.
What are NFTs?
Non-fungible tokens or NFTs are digital assets that represent real-world objects like art, music, in-game items and videos. NFTs are stored on the blockchain with unique identification codes and metadata that distinguish them from each other. They are bought and sold online, frequently with cryptocurrency. Anyone can view them for free, but only the buyer owns the original item. Ultimately, the item contains built-in authentication, that serves as proof of ownership
Ethereum is the second-largest cryptocurrency after Bitcoin. It is also a decentralized computing platform that runs a variety of applications. In short, Ethereum is a platform powered by blockchain technology. Specifically, Buterin and Joseph Lubin launched it in 2015. Initially, they only wanted to enable the secure trading of virtual currency. Today, it’s the second-largest cryptocurrency by market value after Bitcoin.
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Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Gas prices are denoted in small fractions of ether (ETH) called gwei or nanoeth. This fee goes directly to Ethereum miners who provide the power necessary to verify transactions and keep the network running. Hence, the exact price of the gas is determined by supply and demand between the network’s miners and users of the network who seek processing power.
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When a set gets popular, thousands of buyers flock to a minting page at the same time to grab NFTs. As a result, this causes Ethereum gas wars, which drives gas ETH prices way up. Consequently, you need to increase your gas fee and outbid the others for your transaction to go through. However, if there are a lot of transactions awaiting validation and users are nervous about missing an opportunity, they might offer significantly more than the base gas fee amount.
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Minting an NFT is a process to make your digital art a part of the Ethereum blockchain. In other words, it’s the process of creating an NFT on the blockchain. Essentially, the process is similar to the way that metal coins are minted and added into circulation. Similarly, NFTs get “minted” once they are created. Once an NFT has been minted, it exists on the Ethereum blockchain forever.
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Airdrops have long been a common practice in the general crypto space. However, they have also become a popular way for NFT projects to reward their early adopters. When you receive an airdrop, you automatically get a certain amount of a specific cryptocurrency or a new NFT dropped into your wallet for free.
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To ‘ape into’ something means irresponsibly buy something, with too much money relative to your account size. Additionally, this buying process is done without having done your proper due diligence. Thus, it refers to investing all of your available money in a cryptocurrency with haste. Usually, it represents fear of missing out on potential gains.
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To burn an NFT essentially means to destroy it. Since NFTs are stored on a blockchain, they exist there forever. Essentially, you cannot delete an NFT, however, you can ‘burn’ it. Click here to learn how.
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The ‘floor’ or ‘floor price’ represents the lowest price in an NFT collection. In other words, it refers to the cheapest NFT within a certain category. Additionally, it is the most popular metric for tracking a project’s performance over time and its relative success compared to others.
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Technically, FUD is a piece of technical jargon used within the crypto community. Specifically, it stands for “fear, uncertainty, and doubt”. The term is a way of spreading exaggerated negativity about a crypto coin. Ultimately, it aims to create an atmosphere of uncertainty around cryptocurrency.
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Generative art is one of the key innovations in the world of digital art and collectibles in recent years. In short, it refers to art that has been created with the use of an autonomous system. Often, it refers to algorithmically determined computer-generated artwork and synthetic media. Ultimately, it was used to create all the major collections like Bored Ape Yacht Club, Cool Cats, Sup Ducks, Pudgy Penguins, etc.
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The metadata includes all the necessary and unique data that makes an NFT. In fact, the metadata defines how a piece of art or a collectible looks. An NFTs metadata is what describes the properties of the NFT, including the image itself. For instance- clothes, background, features etc. Sites like OpenSea use the metadata to allow users to filter collections.
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A rug pull is a malicious maneuver in the cryptocurrency industry. It is a technique crypto developers use to promote a new project to investors. Soon after, they abandon a project and disappear with investors’ funds. Essentially, it is a scam where the people behind a seemingly legit project disappear with all the money immediately after launch. You might get an actual NFT in return for what you paid, but it’s most likely worthless and not even tradeable on a secondary marketplace.
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It is basically a screenshot, but with benefits. For instance, a team will often take a snapshot at a certain point to determine who’s eligible. Consequently, everyone who held NFT X in their wallet at the time of the snapshot will get a free airdrop of NFT Y next week.
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‘Sweeping’ is another commonly uttered term within the crypto community. To sweep the floor is to buy all minted NFTs in a specific project at the floor price. Thus, when you buy all listed NFTs, you have swept the floor.
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A ‘whale’ is someone with a lot of money, either available to invest or already invested in a high-value NFT project. The term describes an individual or organization that holds a large amount of a particular cryptocurrency. Specifically, someone with 1,000 ETH would be considered a whale, just like someone with 200 Bored Apes would.
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Mooning is a term often used in the crypto and NFT space. It describes the price or value of a certain cryptocurrency or an NFT project experiencing a spike. In other words, it refers to a certain coin or token value raising in price rapidly.
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Cryptocurrency represents a tradable digital asset or digital form of money. Specifically, it is built on blockchain technology that only exists online. Bitcoin and Ethereum are the most well-known, and the oldest. Additionally, there are hundreds of other, small-volume cryptocurrencies collectively known as altcoins.
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Anyone can create an NFT. No experience is necessary. As long as you can prove you created or legally own the content.