Glossary

Like many communities, the NFT/Blockchain community has its own jargon and ways of expressing itself, which can sometimes be overwhelming or confusing for newcomers. This glossary contains every new word you need to know in order to become a fully-fledged member.

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1:1 Art

a single unique piece of NFT from an artist. Usually, the price of 1:1 art is much higher than that of NFTs from an extensive collection.

1/1 of x

this is not some kind of arithmetic problem. 1/1 of x refers to one unique NFT from a collection of X NFTs. For example, CryptoPunks come from a collection of 10 000 NFTs, but each one of them is unique.

AB

an acronym for Art Block, a digital art platform built on the Ethereum blockchain that produces, sells, and stores generative art. One of the most famous collections under Art Blocks is Fidenza, the most expensive piece ever sold was #313 for 1,000ETH in August 2021. The term art block should not be mistaken for an NFT collection.

ADA

the native cryptocurrency of the Cardano blockchain platform, which was launched in 2017 by Charles Hoskinson, who was the co-founder of the Ethereum network.

Airdrop

the act of sending cryptocurrency coins/ tokens or NFTs for free to different wallet addresses. Some NFT projects may airdrop free companion NFTs to reward the original NFT holders. Airdrops can also be used as a marketing strategy for NFT/ crypto-related projects to generate attention and new followers. For example, in August 2021, NFT collection “Bored Ape Yacht Club” holders were airdropped a “mutant serum,” which allowed them to mint a free Mutant Ape based on their original apes, which could be freely traded afterward. The floor price for one Mutant Ape is currently sitting at 6.3ETH (as per December 2021).

Ape in

the practice of rushing into buying new NFTs or coins without doing proper research. This expression originated from the ‘apes together strong’ meme. “Aping in” is a practice that is obviously not advised by or to anyone in the blockchain community.

Asset

in the world of finance, an asset is anything whose value is derived from a contract. It can be a digital asset such as an NFT or a cryptocurrency.

Blockchain

an open spreadsheet that everyone in the crypto world has access to, which records all transactions automatically within a determined digital space.

Block explorer

a platform used to browse transactions within a blockchain ledger.

Bridge

software that moves tokens from one blockchain to another for a fee. Bridge services like Rarebits allow users to trade their NFTs when no other common means are available (such as Shapeshift or Kyber Network).

BSC

an acronym for Binance Smart Chain, a blockchain that provides an alternative to Ethereum. Some DeFi platforms like PancakeSwap use BSC, benefiting from much lower transaction fees. The BSC blockchain was announced in September 2020 by Binance, a leading cryptocurrency trading exchange, and runs in parallel with Binance’s native Binance Chain (BC), providing the high transaction capacity of BC with added smart contract functionality.

BTD or BTFD

an acronym for the expression “buy the dips” or “buy the f***ing dips.” It means to purchase an asset after its price has dropped, which is usually considered a bargain since the asset’s value is likely to bounce back over time after a short-term correction.

Burning

to send an NFT to the contract address, destroying it and making it no longer transferable.

BURST

These are NFTs you want to buy, also known as assets on the market.

CAT

an acronym that stands for Cryptocollectible Asset Token, also known as a Cryptokitty. These are some of the most popular NFTs on Ethereum and work as breedable digital pets. They can be thought of as tradable NFT Tamagotchis.

Collectible

something that has value or rarity, such as a mini-figure or a pair of special edition sneakers. Collectibles take the form of NFTs in the digital world, and just as physical collectibles, their value depends on their rarity and demand.

Community Designated Sellers (CDS)

people who set up their addresses with specific purposes and fees to serve as intermediaries designated by the communities to connect people who wish to sell NFTs with potential buyers.

DAO

an acronym for Decentralized Autonomous Organization. DAOs are not governed by one single person or entity. The rules and governance of each DAO are coded in smart contracts on the blockchain and cannot be changed unless voted upon by the members of the DAO. More and more recent NFT/ Metaverse projects are setting up DAO treasury in which the fund is collected from their NFT sales, and holders can decide how to use the treasury and future project direction, etc.

Dapps

applications that run on decentralized networks (not just Ethereum, but any platform). They’re crypto-based projects that can take many forms, from games and social apps to crypto-based music sharing platforms.

Decentralized Exchanges (DEX)

exchanges that allow for peer-to-peer transactions, allowing users to get rid of third parties.

Degen

the practice of rushing into buying new NFTs or coins without doing proper research. This expression originated from the ‘apes together strong’ meme. “Aping in” is a practice that is obviously not advised by or to anyone in the blockchain community.

Delist

to cancel the listing of an NFT for sale from an open market.

DeFi

short for “decentralized finance.” These are usually financial platforms or technologies that use blockchain to allow direct, private, and transparent transactions.

Diamond Hands

someone who has high-risk tolerance for high volatility assets. It originated in 2018 on the forum website Reddit, in the /r/WallStreetBets subreddit. Diamond Hands don’t panic-sell their assets no matter the volatility. There is also a negative definition of “Diamond Hands,” which refers to a stubborn investor who is unwilling to let go of an asset despite its falling value.

Discord

one of the most popular social media platforms for NFTs and gaming. Most NFT projects have their Discord channels to keep the community engaged and informed of new updates regarding the projects.

Distributed ledger

the technology used for decentralized systems and platforms. A blockchain is a type of distributed ledger technology, but there are other types besides blockchain, which offer different mechanisms and degrees of decentralization.

Drop

an event where users receive free tokens for holding onto certain types of assets or fulfilling certain criteria.

Degen

short for “degenerate,” commonly used in the blockchain community referring to people who make risky investments too often, without doing proper research.

DYOR

short for “do your own research.”

ETH

the abbreviation for Ethereum, which is the blockchain that stores the majority of NFTs.

Ether

an altcoin with its own blockchain, just like Bitcoin has BTC.

Etherscan

the most popular block explorer to check the worth of digital collectibles. You can also use it to verify balances and transactions.

Exchange

a platform for users to trade crypto assets. One of the most popular examples of these platforms is Binance.

Farm

also referred to as a mining farm or crypto-farm. It’s a large array of computers or GPUs dedicated to mining cryptocurrencies, usually owned by a single person or organization.

Farming

also known as yield farming, it’s a process that involves staking or lending one’s m cryptocurrencies to DeFi platforms for an interest in crypto assets. Although it also uses the term “farming” as an analogy to “growing one’s cryptocurrencies,” it shouldn’t be mistaken with a “crypto farm,” nor with mining.

Fiat

This is the name for currencies like USD, Euro, and GBP.

Flipping

buying items at low prices and selling them quickly for a profit. Flipping is gaining popularity in the NFT space, where people buy and sell NFTs to make a quick profit, especially during the early stages of the projects when there are higher demands.

Floor price

the lowest listed price of an NFT project. It doesn’t necessarily mean NFTs should always be bought at the floor price since most NFTs at this price are usually of low rarity. However, It tends to be a good entry point for project newcomers.

Floor is lava

an expression that originated in child’s games. Since “floor” is short for “floor price” in the NFT world, “floor is lava” refers to “avoiding the low price,” which usually means the floor price is rising.

Floor sweeping

the act of repeatedly buying NFTs at the floor price. The expression “sweep the floor!” is commonly used on NFT forums to encourage buying NFTs at the floor price, usually aiming for it to increase.

Fungible Tokens (FT)

interchangeable, tradable tokens, such as ETH and BTC. The most common type of fungible tokens are cryptocurrencies.

FUD

short for “fear, uncertainty, and doubt.” The expression FUD is commonly used when the price of a coin/ NFT project drops or when there is negative news or rumors. People tend to panic-sell their assets when there is FUD.

Gas

a fee required to perform cryptocurrency transactions on the blockchain. Every time someone buys an asset, sends ETH, or sets up a smart contract, gas has to be paid to run the transaction. The name of these fees is owed to the fact that they’re used to cover the energy expenditures of the blockchain.

GPU

a computer part called a Graphics Processing Unit or graphics card. Blockchain transactions in platforms like Bitcoin and Ethereum require a lot of computing power to function. GPUs provide that power in a process known as “mining.” GPUs are also commonly used for playing graphically demanding computer video games.

GWEI

also called nanoether, or simply nano, is a small denomination of ETH which is equivalent to the ninth power of the fraction of 1 ETH (0.000000001 ETH). Ethereum gas prices and other relatively small amounts of ETH are measured in Gwei.

Hashrate

a measure of the speed at which a GPU can mine crypto tokens.

HODL

short for “hold on for dear life.” A common expression that encourages holding an asset for a very long time, regardless of volatility. The HODL comes from a fortuitous typo of the word “hold,” made by a user on an early Bitcoin forum in 2013. Some readers interpreted it as an acronym, which has been widely spread since.

ICO

stands for Initial coin offering. It’s an event where a company sells digital assets to early adopters.

IMX

short for Immutable-X, an NFT marketplace known for being the first layer 2 Ethereum for NFTs. Trading NFTs on Immutable X requires little to no gas fees. The platform is gaining popularity due to the high costs of gas fees on Ethereum based NFT platforms like OpenSea.

IYKYK

an acronym for the expression“If you know, you know.” It implies that a message or post will make sense for some people but not others. For example, “I just had a date with a guy who owns 10 CryptoPunks. IYKYK.”

KOL

short for “key opinion leader,” a synonym for social media influencer.

LFG

short for “Let’s F**** Go.” People use it when they’re excited about something. “The floor price of the NFT project I got into last night has already doubled this morning. LFG!”

McDonald’s

in the NFT and blockchain community, McDonald’s is jokingly referred to as a backup career plan for failed investors and project promoters.

Meatspace

the real-life physical world, as opposed to the virtual world or cyberspace.

Metaverse

a social construction that leverages the Web 3.0, blockchain and computer interfaces where individuals build customs, habits and values, which allow them to spend time and socialize in the virtual world using their digital identities (avatars). It co-exists with the real world.

Miner

a person who uses their GPU to mine tokens on a blockchain network.

Mining

the process of solving cryptographic problems on a blockchain. The first miner to solve the problem gets to add a block into the blockchain and receive newly minted tokens as a reward. These cryptographic problems exist as a decentralized way of managing the blockchain, making it increasingly difficult for new tokens to be created, as a measure to prevent the blockchain from being controlled by a single entity, as well as avoiding inflation in crypto.

Mint/Minting

the creation process of an asset in the blockchain. There are two different types of minting methods: Mint-A-Tokens, where an asset creator chooses who can create tokens/NFTs, and burn Minting, where NFTs are given another digital wallet’s private key, locking them forever and preventing them from being destroyed or transferred.

Minting interval

the frequency with which assets can be minted on a blockchain platform. Some marketplaces have their own terms on minting intervals.

Mods

it refers to the moderators of Twitter or Discord channel. The role of moderators is to ensure a healthy, active and informative community experience in these spaces.

Moon

“To the moon!” is often said in the crypto/NFT space. When the price of a coin/NFT goes to the moon, it means it goes up/ skyrockets a lot.

Moonboy

someone who is not rational and has blind faith in a coin/NFT project no matter what, going as far as to bash anyone who does not share that faith.

Mooning

when the price of a coin/NFT is experiencing a spike, it is “mooning.”

Multisig

short for “multi-signature wallet.” A wallet that requires transactions to be approved. It’s frequently used in DAOs. The DAO multisig wallets are controlled by a committee of trustworthy people, which guarantees the DAO’s security and ensures that the passed proposals will result in an on-chain action.

NFA

short for “not financial advice.”, usually said by people who share their thoughts on specific assets, as a disclaimer warning that those thoughts are “NFA.”

NGMI

short for “not gonna make it.”, and the opposite of GMI. Refers to people making bad trading decisions.

Noncustodial Wallet

an online wallet that the user controls using private keys stored in their own computer. One example of a noncustodial wallet is MetaMask, a browser extension that lets users run Dapps in a regular web browser (instead of a centralized app).

Noob

someone who’s new to the blockchain world and doesn’t understand how it works. This term is taken from the gamer jargon, where it’s used to refer to players who are new or not proficient at a game.

Nuclear NFTs

rare collectibles with over 1,000 collective owners. Ownership of these collectibles cannot be transferred from one wallet to another without the permission of every single owner.

OS

short for OpenSea —the most popular decentralized marketplace for trading NFTs. OpenSea allows users to buy and sell NFTs on the secondary market and create their own collections to launch on the primary market. It was founded in 2017, originating as a platform for trading CryptoKitties. Since then, it has grown into a marketplace for collectibles and many other digital assets like art, gaming items, music, domain names, etc.

Paper Hands

someone who is nervous and tends to panic-sell their assets or flip their position too soon. The term “paper hands” is the opposite of “diamond hands” and has a similar origin on the Reddit forums.

Peer to Peer (P2P)

also known as person-to-person or direct trade. These transactions don’t involve intermediary platforms, exchanges, or third parties.

Permanent Records

the Ethereum blockchain permanently stores records on the transactions that involve digital collectibles. This means crypto collectibles will never disappear unless removed from the ledger.

PFP

short for “profile picture.” Many people in the NFT space like to show off their NFTs by using them as PFP on different social media platforms.

Play-to-Earn (P2E)

a type of video game that uses blockchain technologies to allow players to earn money by playing. This usually involves in-game items as NFTs, which can be traded among players.

Probably Nothing

this term is used ironically to mean “probably something important.” Example: “The NFT collection that I created and just launched is now no.1 in trading volume on OpenSea. Probably nothing.”

Proof of Stake (PoS)

a verification method for transactions in which users are rewarded after holding on to tokens for a certain time. Like mining, this process requires some computing power and electricity usage.

Proof of Work (PoW)

another verification method for transactions, which requires miners to solve cryptographic problems. This method makes it difficult for hackers to crack the network since they’d need to hold over 51% of all the computing power that allows the blockchain to function.

Public Key

like a private key, a public key is a cryptographic key that allows people to access a wallet and its NFTs. The difference is that, unlike private keys, public keys don’t need to be kept secret. They’re posted in open spaces, where the blockchain itself verifies the identity of each user, allowing them access to their specific tokens.

QR code scanning

the easiest way to send NFTs or Ethereum for users with mobile wallets that support this feature. All it takes is to scan a QR code using one’s cell phone.

Raids

flash campaigns on Twitter or other social media platforms. Some NFT projects like to use raids as a way to keep the community engaged in order to promote their NFTs.

Rarities

many NFTs on the Ethereum blockchain are assigned a certain level of rarity, depending on the amount of them that is minted. These items have unique IDs and metadata and are labeled as “Legendary” or “Mythic.”

Re-Mint

when coins or tokens are minted on a blockchain, the digital wallet owners are given private keys, preventing anyone other than the wallet owner from destroying or transferring the tokens.

Rekt

a slang term for “wrecked.” It’s often used in the online gaming community referring to someone who experiences a one-sided defeat in a game. In the crypto community, rekt relates to someone who has experienced severe financial loss because of a bad investment decision.

Reveal

many NFT collections nowadays have a “delayed reveal” feature, which prevents everyone from seeing digital art pieces or checking their rarity within a set time. That’s why it’s common to see members of an NFT community asking “Wen reveal?” before the revealing day (even if the question has been answered several thousand times).

Right-Click, Save As

an argument commonly used to criticize NFTs by people who don’t understand how they work. It comes from the common misconception that NFTs are just digital images saved on a computer. Example: “How can people pay thousands of dollars for an image that I can just right-click and save?!”

Ring Signature

a digital type of signature that uses a ring-like structure. When multiple users are in a specific group or have collective access to a certain digital asset, the ring signature allows individual users to sign their approval for a transaction without revealing their identity to other members or owners.

Rug or rug pull

a type of scam where the team or person behind a crypto or NFT project abandons it and runs away with the investors’ money. Unfortunately, this is a common occurrence due to the loose regulations of the crypto world. It’s important to look out for red flags in different crypto/ NFT projects to avoid potential rug pulls.

Satoshi

the smallest unit of Bitcoin (0.00000001 BTC) named after Satoshi Nakamoto, an anonymous person or group credited for developing the first blockchain and creating Bitcoin.

Secondary market

after an NFT is minted, it can be sold or purchased on the secondary market, such as OpenSea.

Seed Hash

a 32-byte random value that allows public and private keys to be regenerated..

Smart Contract

an agreement that is automatically executed between two or more parties under certain conditions. Smart contracts are enforced on the blockchain network, irreversible and unchangeable.

SOL

the cryptocurrency that runs on the Solana blockchain. Compared to the Ethereum blockchain, Solana is much faster regarding the number of transactions it can process and has much lower gas fees. It may, however, have some downsides.

Solidity

a programming language for Ethereum-based crypto token smart contracts. It stands for “Secure Interoperable Data Marketplace.” This process occurs when people register any new NFT on the blockchain, including illustrations and 3D models with metadata underneath to describe each asset’s unique history.

Stablecoin

a cryptocurrency that is pegged to a fiat currency’s value. A stable coin tracks the underlying asset (e.g. USD), and makes its own value stable over time. Some popular stablecoins include USDC, USDT, and DAI. Many investors choose to lend out their stablecoins as the interest rates can often be significantly more than what is earned in a traditional savings account.

Staking

The process of locking up tokens in a wallet for a certain amount of time. The more tokens locked up, the more chances there are to earn a reward, as long as other stakeholders are also taking part. This usually happens on PoS blockchains where users stake their tokens and get rewarded every few seconds or after processing a certain number of blocks.

Vaporware

a technological tendency or promise that has been widely advertised but lacks realistic viability. The term is often used in the blockchain and NFT community to refer to projects that seem too good to be true.

WAGMI

this is where tokens lie while they’re not in use. A wallet could be a cold storage wallet and the place from which digital items are sent and received. This is usually done through platforms like Metamask and MyEtherWallet.

Wallet

a platform used to browse transactions within a blockchain ledger.

Wen Lambo

an expression of wonder about the moment when one’s crypto/NFT holdings will take off, presumably making oneself rich enough to afford a Lamborghini.

WETH

stands for wrapped Ether/ETH. A token (ERC20) whose value is pegged to ETH. Conforming ERC20 allows for increased functionality across any application that handles ERC20 tokens, which is often very useful for NFT offers and in DeFi. It’s possible to convert WETH to ETH on a 1 to 1 basis and vice versa.

Whale

someone who has a multi-million dollar portfolio or owns a massive amount of NFTs in an NFT collection. Whales’ wallets are often tracked by NFT and crypto investors who use them to guide their future investment decisions