Embark on your journey into the world of Non-Fungible Tokens (NFTs) and Web3 with confidence by familiarizing yourself with key terms and concepts categorized for clarity.
NFT basics
Non-Fungible Tokens (NFTs): Digital assets representing unique items or creations with blockchain-managed ownership.
Collection: Curated sets of NFTs, akin to galleries or stores, facilitating organization and discovery.
Blockchain fundamentals
Blockchain: Decentralized digital ledgers recording transactions securely across a network.
Crypto wallets and cryptocurrency
Crypto wallet: Tools enabling storage, management, and transactions of cryptocurrencies and NFTs.
Cryptocurrency: Digital or virtual currency secured by cryptography, powering transactions within the NFT ecosystem.
Bitcoin: The first and most well-known cryptocurrency, operating on a decentralized network called Bitcoin blockchain.
Decentralized applications (dApps) and infrastructure
dApp (Decentralized App): Applications built on blockchain technology, offering decentralized functionality.
Solana Name Service (SNS): Decentralized domain naming system simplifying wallet address readability on Solana.
Solana: A high-performance blockchain platform designed for decentralized applications and crypto-native projects.
Ethereum and interoperability
Ethereum (ETH): Leading blockchain platform supporting smart contracts and transactions.
Ethereum Virtual Machine (EVM): Runtime environment enabling smart contract execution and interoperability.
Smart contract: Self-executing contracts automating agreements within the blockchain ecosystem.
Ethereum Name Service (ENS): Domain naming system on Ethereum resolving to wallet addresses, facilitating NFT and cryptocurrency transfers.
Transaction dynamics
Floor price: Minimum listing price for items within an NFT collection, serving as a benchmark for asset valuation.
Gas fees: Transaction fees paid by users to execute operations on the Ethereum blockchain.
Gwei: Denomination of ETH used to measure gas fees accurately.
Priority fee: Additional transaction fee incentivizing validators for prompt transaction processing.
Security measures
Private key: Cryptographic string granting access to digital assets stored on the blockchain.
Seed phrase: Series of words used for generating and recovering a crypto wallet, crucial for safeguarding digital assets.
Wallet address: Unique identifier associated with a crypto wallet, used for sending and receiving cryptocurrencies and NFTs.
Understanding these key terms and concepts, spanning across Ethereum, Solana, and Bitcoin ecosystems, lays a solid foundation for navigating the dynamic landscape of NFTs and Web3. With clarity on terminology and fundamentals, you can confidently engage in the future of digital ownership.