Terms to Know 

 

Below you will find the major ones but this is by no means a comprehensive list. If you’d like to learn more be sure to check out my YouTube channel for an in-depth review of the content. Starting at the top: 

NFTs

 

NFT stands for non-fungible token and is a unique digital asset that is secured on a blockchain, usually Ethereum. Digital assets can be pictures, videos, audio files. 

 

Cryptocurrency

 

Cryptocurrency is any encrypted digital currency. Transactions of these currencies are recorded in a public ledger called a blockchain.  It is not monitored by a centralized authority such as a bank or government.  Bitcoin, Ether, and Litecoin, are popular cryptocurrencies.

 

Blockchain

 

A blockchain is a distributed database shared across a computer network. The database collects information together in groups, or blocks. Blocks have certain storage capacities and, once it's filled, the block is closed and linked to the previously filled block, forming a chain of data. Which is where we get the name, blockchain. Once a digital block is added to the chain, the information it contains can be recorded and distributed, but not edited, altered, deleted, or destroyed.

 

Web3

 

Web3 or Web 3.0 is a catch all term for a new iteration of the Internet which incorporates concepts such as decentralization and token-based economics made possible by the proliferation of blockchain technologies.

 

Bitcoin

 

Bitcoin is a cryptocurrency created in January 2009 Satoshi Nakamoto. No one knows his or her true identity and the name is a pseudonym. Bitcoin is generally regard as the first cryptocurrency. Bitcoin transactions are verified on the blockchain through a process known as mining and there is a limited number of bitcoins that can ever be mined - 21 million. Mining uses a lot of computing power and energy, which is why Bitcoin is criticized as not being environmentally friendly.

 

Ethereum

 

Ethereum is a platform powered by blockchain technology. The Ethereum platform supports a network of decentralized apps, or dApps. Smart contracts also originated on the Ethereum platform and are a central component of how the platform operates. Many decentralized finance (DeFi) and other applications use smart contracts in conjunction with blockchain technology.

 

ETH

 

Eth, or Ether is the native cryptocurrency of the Ethereum platform. Sometimes the platform and the cryptocurrency are both referred to as Ethereum, so if you are unsure, get clarification. Unlike Bitcoin, there are an unlimited amount of Eth that can be created. 

 

Gas Fees

 

When you make a transaction on the Ethereum platform you need to pay a transaction fee, called “gas” or “gas fees” to have your transaction added to the blockchain and verified. Gas fees go to the >>>. Gas prices are set based on supply and demand. If a lot of people are carrying out transactions, gas fees will be higher.

 

Gwei

 

Gwei is a denomination of Eth. It the same way cents are used to denote a smaller amount of a dollar or Euro. where there are 100 cents in one dollar, there are 1 billion gwei in one Eth. Gas fees are sometimes quote in Gwei.

 

Fiat

 

In contrast with cryptocurrencies, we have fiat currency, which has nothing to do with the car, by the way. Fiat money is a government-issued currency that is back or guaranteed to have a particular value by the government that issued it. Fiat money includes the US dollar, British pound, euro, peso, Aussie Dollar, Canadian Dollar, the Yen, Yuan, Bhat, Rand, you get the idea.

 

Wallet

 

When you hear “wallet” in the crypto world people are referring to your DeFi wallet, not the leather wallet in your back pocket. DeFi wallets can be hot or cold and include products like Metamask, Coinbase Wallet, Trezor and Ledger. DeFi wallets house your public and private keys that you need to send and receive crypto.

 

Public & Private Keys

 

The main purpose of your DeFi wallet is to house your public and private keys. Both of these keys are a long, unique strings of numbers and letters. Your public key is sometime called your wallet address and its analogous to your email address. You give people your public key so that they can send you coins or tokens. The public key is one way - with your public key people can send assets to your wallet, but they can’t take anything out. This is my public key; you are welcome to send me crypto. Now, to transfer, swap or withdraw assets you need your private key. It’s like your password. You do not share your private key with anyone. 

 

Seed Phrase

 

Because DeFi wallets are decentralized, there’s no organization managing all your accounts. So, if you forget your password or login, you can’t ask customer support to help you. So as a backup, most DeFi wallets will give you a Seed Phrase during setup. Do not lose your Seed Phrase. Write it down and put it somewhere safe. If you need to recover your account, this is the only way to do it.

 

ENS

 

ENS stands for Ethereum Name Service and is like your crypto domain. Instead of sending someone your public key, which is that long string of letters and numbers, you can claim a unique ENS, that uses regular names or phrases and using a blockchain smart contract, you connect it to your public key. For example, my ENS is lorilee.eth. You can claim your ENS on https://app.ens.domains/. You will need a funded crypto wallet such as metamask or Coinbase wallet to claim your ENS. And it costs about $10US per year or 0.002ETH, plus gas fees and the lowest I’ve seen gas fees here is $50. Once purchased You don’t need to do anything to connect your public key, ENS does it all for you. 

 

Polygon

 

Polygon is a platform built on a side chain of Ethereum and because of its lower gas fees, is becoming more and more popular for NFT projects. Odds are if the NFT you’re after isn’t on Ethereum, it will be on Polygon.

 

Matic

 

Matic is the native currency of Polygon.

 

Discord

 

Discord is a chat app, similar to Slack. It is where crypto communities go to interact. It’s also super popular in gaming, as a way to coordinate gameplay and talk while playing. If you are interested in a particular NFT project your first step is to get on their discord server and get to know the community and project.  If you came here from the NFTree Discord, be sure to let me know in the comments. If you are new here, consider hitting subscribe, it’s free and you can always change your mind later. If you want to learn more about NFTree and how to get on the whitelist for the genesis collection, I will leave a link to our discord in the description. When you get in there don’t forget to say hi. I’m one of the mods in red and my handle is just my name.

 

Minting

 

Minting is the process of taking a digital file and turning it into an NFT. Once minted an NFT cannot be deleted, edited or modified as it has been added to a blockchain. If you are invited to mint an NFT, that digital asset will reside in your DeFi wallet as soon as the creation process is completed, where you’ll be able to access the benefit associated with the NFT and you will be able to sell that NFT on a secondary market.

 

Whitelist

 

For NFTs, whitelisting is when your crypto wallet address pre-approved for a future NFT mint or NFT drop. To get on a whitelist you provide your public key or ENS. Whitelisting guarantees your spot on at a minting event and sometimes allows you to mint your NFT for a reduced price.

 

Crypto Exchange

 

Crypto exchanges are platforms like Coinbase, Finance, Gemini, Crypto.com, eToro, and Kraken, which allow you to buy cryptocurrencies such as Bitcoin, ETH, and Matic, using fiat currency. In some cases, you will need an account on a crypto exchange first in order to fund your DeFi wallet.

 

Airdrop

 

An airdrop is a way to distribute crypto, tokens, or NFTs for free, to people that are already holders of a specific NFT or on a whitelist. During an Airdrop, assets are sent directly to a web3 wallet address for promotions, or just as a bonus for participating in the community. Airdrops are generally used to add additional value to an NFT or to improve brand experience.

 

Secondary Market

 

In the NFT world, the secondary market is any place you go to buy an NFT from another collector. Common secondary markets include OpenSea, Rareable and Super Rare. In contrast if a sale happens between the creator of the NFT and the first collector, is usually conducted on the creator’s own website, which is considered the primary market. There are risks and benefits to using both markets, so let me know if you’d like me to cover that in a future video.

 

Genesis Collection

 

A Genesis collection is the first NFT sale from a particular brand, DAO or creator. People who participate in genesis collections are often rewarded for their early support of a project with exclusive airdrops, merchandise, events, and so on.

 

Ok, you made it! Let me know what terms you think we should include on the next list in the comment.