NFT Terminology

Are you wondering why understanding Web3 terminology is so important? Here we explain the most important Web3, NFT, and metaverse terms for 2023! If you’re thinking about entering the crypto world, you’ll need to master the Web3 jargon. Initially, NFT terms may seem foreign or confusing, but our NFT Dictionary will greatly assist you. Let’s get started and guide you as you step into the Web3 world!

NFT Dictionary: The Most Important Web3 Terms for 2023

Airdrop

An airdrop refers to the distribution of NFTs or tokens to users’ wallets, usually for free. Projects typically conduct airdrops to promote a collection or reward loyalty.

Avatars

Avatars are representative characters that belong to you in the digital world. They can be created in 2D or 3D and used within the metaverse.

Blocks

A blockchain is a distributed ledger or database that can securely store information digitally. dApps (decentralized applications) running on blockchain networks like Ethereum or Solana leverage the power of blockchain technology.

DAO

DAOs, or Decentralized Autonomous Organizations, are organizations that operate on a blockchain without a hierarchy. Managed through smart contracts, DAOs make decisions and operate based on the votes of their members.

DApps

DApps are applications built and operated on decentralized networks. They run on blockchain networks like Ethereum or Solana and generally offer privacy and scalability.

Dejen

Dejens refer to a specific group of NFT investors. They often invest in projects without conducting research and fall prey to FOMO (fear of missing out).

ERC-721

A standard on the Ethereum blockchain that represents non-fungible tokens. This standard is commonly used for avatar PFP projects.

FOMO

FOMO, or fear of missing out, is a common term among NFT investors.

Gas Fees

Gas fees refer to the fees paid to miners who validate blockchain transactions. They can vary based on network activity and are frequently encountered on the Ethereum network.

Generative Art

Generative art is a type of art where an NFT’s features are entirely determined by on-chain elements.

HODL

HODL refers to the tendency to hold onto assets despite market volatility.

Metaverse

The metaverse is a virtual world where people can navigate as avatars and participate in events.

NFT

NFTs are blockchain-based digital certificates linked to digital or physical assets. They can be used in various fields, from music to art, real estate, and games.

NFT Marketplace

NFT marketplaces are platforms where NFTs can be bought and sold, typically operating on blockchain networks like Ethereum or Solana.

Smart Contracts

Smart contracts are digital contracts that form the basis of NFTs and manage transactions automatically.

Whitelist

A whitelist is a special list of users who get early access to a collection’s launch.

Whale

A whale refers to individuals with significant amounts of capital, often having a substantial impact on the market.

These terms are key concepts in the NFT and crypto world and encompass the basic terminology you need to know as you step into the Web3 world.