In this opportunity you will learn the most used terms by users in the non fungible tokens ecosystem to understand and start your journey through this industry that is growing every day.
Let’s start with what an NFT is and where this term originated from. In the simple sense, Non-Fungible Token, or NFT, can be understood as a blockchain-based digital certificate that is linked to both a digital asset and can also be to a physical asset.
What makes NFTs attractive is their versatility, i.e., any product such as a song, artwork, real estate, tickets, movies, game, and many other things can be an NFT.
Since the NFT space is full of crypto-related users, industry terms and jargon are largely based on cryptographic culture. While some words are connected to those commonly used in the traditional commercial sector, they may have different meanings.
Let’s start with the most important and serious terminology to know:
AirdropsThis word refers to sending NFTs to users’ wallets, which are usually free of charge. The creators of the projects launch from the air these promotions of their collection to reward the most loyal users and in the future they have the possibility to participate in contests, etc.
AvatarsAvatars are a digital representation of your persona. They can be 2D images that represent you online. Also, there are cases that are hyper-realistic 3D beings for the metaverse. Avatars are the human personification in a digital world.
BlockchainA blockchain is a distributed ledger or also known as a database, which securely stores information digitally. The storage of the blockchain is handled by distributed devices known as nodes in a global computer network. This results in many decentralized servers that store and manage the information, rather than a single centralized server. The technology facilitates an immutable and transparent record of everything that goes on inside and is accessible to the public.
WalletsCrypto wallets are the visual bridge to your crypto assets, whether cryptocurrencies or NFTs. There are hot wallets, which are 24/7 online such as Metamask. Also, there is the other alternative for more security which are cold wallets, such as Ledger, where the assets are located outside of internet connectivity.
DAOThe DAO or Decentralized Autonomous Organizations, are organizations managed through blockchain technology by a group of people without any business hierarchy (there are no CEO, CTO, COO), but the community is who carries the administration and decision making of the future of the organization through votes.
DApps DApps or Decentralized Applications, are any app created and executed in decentralized networks such as Ethereum, Solana, etc., through smart contracts or smart contracts.
Dutch AuctionKnown in English as Dutch Auction is where the price starts high and gradually decreases over time. Many marketplaces use this type of auction for NFT.
Gas FeesThese are the gas fees that users must pay to transact on the blockchain. These fees go to the blockchain miners who validate transactions on the blockchain and the value varies depending on different parameters such as, for example, network activity.
Generative ArtThe art of NFTs is completely determined by the elements of the blockchain, such as a transaction hash. Consequently, the traits of each NFT will be different, just like an ID number or a barcode. This results in generative or randomly generated art NFTs.
MintEssentially, minting refers to the process of adding and registering the NFT on the blockchain. Once the NFT is minted, the NFT is available for the public to view, buy, sell and exchange.
NFT MarketplaceThese are specially created platforms for buying, selling, gifting, exchanging and viewing trades of non-fungible tokens. The most popular marketplaces at present are: OpenSea, Magic Eden, SuperRare, Rarible, among others.
PFPA PFP, or NFT profile picture, is one that is designed to be displayed as the profile picture of users’ social networks. It is currently being widely used in the Twitter Blue service, where owners of NFTs from well-known collections such as Bored Ape Yacht Club or CryptoPunks use it.
Jack Morse’s NFT CryptoPunks PFP
Roadmap Roadmapsare essential in crypto ecosystem projects. It is a document that details the project’s objectives, milestones and short, medium and long term plans. It is a feature that helps users make investment decisions and it is clear that a solid roadmap can make or break a project because of the confidence generated by the fulfillment of what is planned in this document.
Rugg PullIn English it would be something like a rug pull . This is a scam where the entire project team behind the NFTs disappears once the money is raised.
Smart ContractsSmart contracts form the backbone of NFTs. They are lines of code stored as programs on the blockchain. They are automatically executed when certain pre-determined conditions are met in it. The most striking thing about smart contacts is that they do not require third parties to perform actions between users, but rather the person interacts directly with it on the platforms we already described called DApps. If everything is audited correctly, they make transactions secure and transparent for everyone.
Slow or Soft RugA soft rug pull is a long-term scam, in which the founders are still active in the community, while they together with the developers are gradually siphoning off the project funds until proportional to zero value in the collection.
WearablesWearables are NFTs or digital assets for the metaverse. Some companies, such as Nike, Puma and Adidas, are starting to release wearables for Decentraland and The Sandbox, the two most popular metaverses in the ecosystem. These items can be both transferable and tradable, as well as non-exchangeable.
Nike’s new NFT sneakers launched by Nike for the Metaverse
WhitelistThe whitelist of NFTs, is an exclusive list of users who got early access to mint one or more NFTs of the project. They are usually done privately (in spaces like Discord) and usually have a specific time period.
1:1A one-to-one, 1/1 or 1:1, NFT is a one-time issue, non-fungible token. This means that it will not be recreated. Consequently, it generates extreme rarity and makes them much more valuable than other assets. Jack Dorsey, for example, sold his first tweet on the platform as NFT for $2.9 million.
After having understood all these concepts that are used daily in the NFTs space, in the blockchain industry and in the crypto ecosystem, let’s review the special jargon used by users, especially on Twitter, the social network that has adopted this new industry the most. I recommend that if you want to start fitting into this ecosystem, you will surely have to study the following NFTs terminologies.
BozoThose deep in the NFT scene use this word for different things. The person got ripped off? He’s a bozo. chooses the wrong project? Also a bozo. Already have a ledger? Well, surely it could be a bozo.
CleanClean? Yes, don’t feel lost! but a clean NFT is active with minimal or extremely complementary features.
DegenDegens is the collective noun for a certain group of NFT traders. In general this term is self-proclaimed by the traders themselves and they are people who invest in a project without doing hard research and easily fall into the FOMO (fear of missing out) of the market.
DYOR“Do your own research”, connecting with the previous term, DYOR means that people have to invest in a project after researching it and not because a NFT influencer promotes it. Many times users often make hasty and wrong decisions due to FOMO. Rule of thumb: DYOR.
FOMOAcronym for “fear of missing out”. This is a fully cryptographic term and is the feeling that most traders in the ecosystem are familiar with.
FRENThanks to the good vibe that exists among the members of the NFTs communities, we are all here. FrensA misspelling of the word “friends”.
FUDis an acronym for ‘fear, uncertainty, and doubt’. It is generally used when a person or project spreads rumors or negative news, which generates other people to sell their NFTs.
GM/GN (Good Morning/Good Night)GM and GN mean good morning and good night, respectively. They are often used to greet other members of the NFT community in a simpler way.
GMI/WAGMIShort for “we will all make it”, investors in NFTs often use WAGMI to show their optimism and confidence in the NFT they are holding or to express themselves in this way when there is important good news about the project.
HODLThis word means “Hold On For Dear Life”, but members of the ecosystem use it more as a misspelling of ‘hold’. Likewise, crypto veterans originally used it to convey that they hold on to their assets no matter what.
NGMIis “Not gonna make it”. It is the opposite of WAGMI. It usually appears when referring to people or NFT projects that are unlikely to succeed in the long term.
Probably Nothing“Probably nothing” or “usually something” is the best way to encourage people to say nothing, although it really might be nothing. It has been overused this year, but crypto OGs still use it.
WhaleA “whale” is someone who has a lot of money invested or to be invested in high-value NFT projects. Their huge capital has the potential to drastically affect the market both positively and negatively.
Final words
The NFT industry is constantly evolving, innovating and adopting. With it, the terms and jargon used are also in constant movement. From NFTexpress we will be updating these new words or different meanings that the NFT community creates for communication between users. For now, I recommend that you save this article so you don’t get left behind and stay on the cutting edge of everything that has to do with the ecosystem of non-fungible tokens.
Written by Rodrigo Catalan (TW: @RodrigoCatalanB) for NFT Express.