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The New Language of Web 3.0: Crypto, NFT & Metaverse

by Oleksandra Zinevych 30 days ago in nft
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Learn jargon of the new era of Internet

Photo by Li Zhang on Unsplash

Auction - NFT artworks are offered for sale to interested NFT collectors at NFT auctions, and the highest bidders put their bids to purchase the NFT artwork. In an NFT auction, the seller establishes a minimum price for a specific period of time. Buyers can bid on any amount they choose for the NFT as long as it is greater than the minimum price. After that, at the end of the auction time, the NFT is sold to the highest bidder. It's a tool to increase interest and sense of item scarcity in collectors.

Avatar - within a universe or platform, a visible type of digital identity. In the Metaverse, an avatar is more than just a user's generated visage. It essentially becomes the Metaverse's full incarnation of that user. As a result, whatever actions the avatar makes are entirely determined by the user. Full-body avatars, virtual reality avatars, and profile avatars are the three types of avatars. In the Metaverse, an avatar works on the same principles as other online avatars. In the Metaverse, an avatar is a user's identity across the whole universe. You will be able to build and use an avatar in the Metaverse to the same extent as 2D avatars on other platforms.

Collab Land - integrator of crypto applications that connects user wallets to NFT project using Discord. Create a space unique to your early token holders to get product feedback and seed community development.

Collection - every NFT is a one-of-a-kind token on the blockchain, making them non-interchangeable. This implies that no two are same. NFTs turn digital artwork and other valuables into unique, verifiable assets that are simple to trade on the blockchain. An NFT collection is a group of NFTs linked by a common theme and shared characteristics, with different degrees of scarcity and rarity.

Crypto-wallet - crypto wallets keep your private keys - the passwords that grant you access to your cryptocurrencies - safe and secure while allowing you to transmit and receive cryptocurrencies such as Bitcoin and Ethereum. They come in a variety of shapes and sizes, from hardware wallets like the Ledger (which looks like a USB stick) to mobile apps like Coinbase Wallet, which makes using cryptocurrency as simple as purchasing online with a credit card. It's a crypto-address with advanced trading capabilities for both cryptocurrencies and NFTs, which can be kept, transferred, and traded within the wallet.

DAO (decentralized autonomous organization) - decentralization is one of the most important characteristics of digital currencies. This implies they are distributed over a multitude of computers, networks, and nodes rather than being controlled by a single organization like a government or central bank. Virtual currencies, in many circumstances, take advantage of their decentralized state to achieve levels of anonymity and security that are normally unattainable to traditional currencies and transactions.

In 2016, a group of developers were inspired by the decentralization of cryptocurrencies and came up with the concept of a decentralized autonomous organization, or DAO. A decentralized autonomous organization (DAO) is a blockchain-based program that provides users with a built-in paradigm for collaborative code management.

Discord - invite-only messenger and community-building platform preferred by gamers and 'geeks'. Includes interactive formats and became one of the biggest communication tools for the participants of NFT projects. Discord servers are organized into topic-based channels where you can collaborate, share, and just talk about your day without clogging up a group chat.

Floor price - the lowest price level at which you can purchase an NFT item and join a project as one of the holders. Gives you an idea of the starting price point. Usually corresponds to the cheapest item for sale listed publicly.

Gas - refers to the charge that must be paid in order to complete an Ethereum transaction correctly. Gas fees are denominated in ether, Ethereum's native currency (ETH). Gas costs are expressed in gwei, which is an ETH denomination - one gwei equals 0.000000001 ETH (10–9 ETH). A gas war is a competition for first place in a block of transactions that will be validated on a blockchain. When there is a lot of demand, the cost of a priority position can skyrocket. The computer power necessary to verify transactions in a proof-of-work consensus protocol, according to Ethereum, is referred to as "gas." The cost of performing a transaction on the Ethereum blockchain is referred to as gas. Gas prices are established by miners depending on supply and demand for the network's processing capacity, which is required to perform smart contracts and other transactions.

HODL - in the context of buying and holding Bitcoin and other cryptocurrencies, a phrase coined from a misspelling of "hold." Among crypto investors, it's also come to mean "hold on for dear life." This also applies to NFT projects.

Holder - owner of an NFT at the current moment. Holder loses the NFT ownership after reselling it but the smart contract keeps the record of holding forever.

MetaMask - an essential crypto wallet and your entrance point into any blockchain apps. Used by 21 mln. users, it's a browser extension that reflects and authorizes your crypto wallet operations, as well as autogenerates security tools such as passwords and secret phrases.

Mint - to make your NFT purchasable, you must publish it on the blockchain in a specific way. Creating a digital wallet, specifically one that securely keeps Cryptocurrency, is a simple step-by-step process for getting started (well-known wallets include Coinbase, MetaMask, and Rainbow). After that, you'll need to buy a tiny quantity of cryptocurrency to pay the cost of minting the NFT. Finally, you connect your wallet to a marketplace online (such as Rarible, OpenSea, or Zora). To mint an NFT from the ground up, you'll need access to a crypto blockchain and an NFT exchange.

The minting process, from a high level, has the following steps that it goes through:

  • Creating a new block
  • Validating information
  • Recording information into the blockchain

Paper hands - a term that migrated from traditional stocks investing. Paper hands is a slang term used to refer to investors who sell investments too early, mostly because they are risk averse. Applies to NFT holders who do not wait for the value growth of an NFT project before selling.

Pre-sale vs. Public sale - preliminary sales round in the roadmap of an NFT project where participants who join as holders earlier on receive benefits: giveaways, merchandise, lower pricing, better access to the collection, etc. Public sale is the last stage when the mint price is the highest but the benefits can be more significant than on pre-sales in order to attract growing interest.

Quick buck - reference to a desire to get a profit off NFT sales quickly, without investing time and energy into the life and development of an NFT project or community.

Royalty - when your NFT creation is sold on a marketplace, NFT royalties pay you a share of the sale price. NFT royalty payments are made indefinitely and are carried out automatically using smart contracts. You can choose your royalties percentage on most marketplaces. A standard royalty rate is between 5% and 10%. NFT royalties are payments provided to the author automatically based on secondary sales. These are frequently stored on a secondary market and incorporated into a smart contract on the blockchain. The smart contract ensures that the terms of the NFT are met each time a secondary sale occurs. If a royalty is indicated, the artist who created them receives a portion of the proceeds.

Secondary marketplace - in contrast to the main market, where a creator posts their NFT for sale, the secondary market is where a collector can resell or relist an NFT that they have purchased. OpenSea, Raribles, Nifty Gateway, Crypto.com, and GameStop are among the most prominent secondary marketplaces.

Smart contract (with types) - smart contracts are digital transaction protocols that use the blockchain to autonomously enforce agreements without the need for a third party. The conditions of the agreement are written in computer codes, and they contain restrictions and penalties that both parties must agree to before signing. At any given time, an NFT can only have one owner. The uniqueID and metadata that no other token can replicate are used to manage ownership. Smart contracts that assign ownership and govern the transferability of NFTs are used to create them. When someone generates or mints an NFT, they are executing code from smart contracts that follow various standards, such as ERC-721. This data is stored on the blockchain, which is where the NFT is handled.

The transactions through this means are immutable and transparent, enabling the parties involved to audit and validate the data as and when needed. There are three categories of such contracts - Smart Legal Contracts, Decentralized Autonomous Organizations, and Application Logic Contracts. Even though smart contracts are irreversible, developers can adopt indirect ways for updating the codes or clauses for the terms of an agreement if required.

Sweep floor - term used to describe the purchase of low-cost tokens in order to raise the project's total average price. Both project owners and buyers might use this term. Sweeping the floor refers to project owners purchasing all of their NFTs at the Floor Price. Sweep the floor purchasers, on the other hand, buy all of the available tokens or a big proportion of the project's NFTs. When there is a Floor Sweep, it indicates that the tokens have been purchased in quantity. Furthermore, buyers choose to "sweep the floor" because the token is gaining traction or its value is plummeting.

Trait - when constructing PFP NFTs, NFT traits are properties, attitudes, characteristics, or categories that are utilized to distinguish a design. The desirability of a certain NFT is determined by the uniqueness of the features contained within a given collection. PFP NFTs (also known as profile picture NFTs) for example, at first appear to represent a person, animal, or objective. Adding various characteristics (outfits, eye shapes, weapons, caps, colors, backgrounds, and many more) to the design, on the other hand, adds extra layers to the design, such as clothing, accessories, and facial emotions. Because collectors will look for the rarest and most valuable traits, these traits become an important consideration when creating your NFT project.

TraitSniper is one of the greatest resources for sorting NFT products inside a collection and trading them directly. If you have a lot of different traits in your collection, you might want to connect it to your NFT project. Traits range from two in CryptoPunks to twelve in the Azuki project. It's entirely up to the creators.

Roadmap - an NFT project roadmap is a strategic planning tool for defining intended goals, tasks, and high-level milestones in order to launch a project into the market. It is usually created chronologically and comprises phases. While not all NFT or crypto projects require a roadmap, they do assist in defining and communicating the goals and objectives for both creators and holders of the collection's contents. Events, merchandise activities, freebies, website, and Discord activities are all on the schedule.

Rug pull - a scam crypto or NFT project heavily shared on social media for aggressive onboarding of participants. Mostly used in reference to celebrity crypto projects when a celebrity buys into a project and holds a significant share in it evoking trust in followers and thus getting them to invest. After the initial phases a celebrity takes out all the shares leaving the project and holders or investors on a dead cause and a much less valuable project with no real life ahead. Rug pulls led to several court suits with names like Kim Kardashian in the headlines. After the price has been driven up, the scammer sells, and the price generally falls to zero.

Utility token - internal cryptocurrency of an NFT project. It's a cryptocurrency that has a specialized use case within a given ecosystem. These tokens allow users to conduct certain actions on a network, usually in association with the project's initial currency (ETH, MATIC, etc.). The ecosystem in which a utility token exists is unique. To keep people interested in holding NFT collectibles, some utility tokens are handed out over time. Utility tokens are not coins that can be mined. They are frequently pre-mined, meaning they are created all at once and dispersed in a manner determined by the project's staff.

Whitelisting - a process of receiving a "golden ticket" in the line for the best priced NFTs. The opportunity to get onboard an NFT project to be one of the first and most privileged holders. It can include activities, requirements for community invites to spread the word, timed availability and other constraints to increase the interest in NFT collectors.

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Oleksandra Zinevych

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