What are the key terms that must to known in NFTs and Web3 ?
Here is a list of key terms used in the NFT field and it’s helpful to review before you begin.
- Non-Tradeable Tokens (NFTs) – Non-Tradeable Tokens (NFTs) are unique, digital items with ownership managed by the blockchain. Examples of NFTs include digital art, collectables, virtual reality items, crypto domains, ownership records for physical assets, and more.
- Blockchain – A blockchain is a digitally distributed ledger that facilitates the process of recording transactions and information over a network. We can think that it is a decentralized or distributed database.
- Ethereum / ETH – Ethereum is a blockchain and ETH is the currency on the Ethereum blockchain.
- Gas fees – Gas fees are Ethereum blockchain transaction costs.
- Crypto wallet – A crypto wallet is an application or hardware device that allows individuals to store and receive digital Items such as cryptocurrencies and NFTs.
- Wallet address – Also known as your “public key”. Your wallet address is unique. The address people will use when sending cryptocurrency or NFT is located as your wallet address. Your software or hardware wallet only contains the key for that address. In Ethereum, your address starts with “0x”.
- Private key – A string of numbers (usually 256 characters long) that represents your signature to authorize transactions on the blockchain.
- Private Key – A private key is a list of words (usually between 12-24 words) that can be used to recover your crypto in case you forget your password or lose access to your wallet. When you first start trading with your wallet, find your private key phrase and back it up in a safe place in more than one place if possible. The first time you create a crypto wallet, you get a private key. Also known as “mnemonic phrase” or “secret recovery phrase”. Do not store the private key in an online cloud storage service and never share it with anyone.
- Collection – A collection is a set of work, such as a store or gallery.
- Dapp (decentralized application) – A blockchain-integrated website that requires you to connect and confirm all transactions with your wallet signature.
- Smart contract – Smart contracts are decentralized codes that run on blockchains. Dapps are powered by smart contracts. Buying and selling NFTs on Byepix is based on smart contracts.