NFT Glossary - All the terms you need to know

Welcome to our NFT Glossary page, your comprehensive resource for navigating the dynamic and often complex world of non-fungible tokens. Whether you're a newcomer eager to dive into the fascinating realm of digital assets or an experienced enthusiast looking to refine your understanding of NFT jargon, this glossary has got you covered.

Here, we've compiled an extensive list of essential NFT slang, acronyms, and specific technical terms that are integral to understanding and participating in the NFT space. From the basic concept of what an NFT is to more intricate terms that seasoned users encounter, our glossary is designed to demystify the language of NFTs and make the technology accessible to everyone. Dive into our guide to not only enhance your vocabulary but also to deepen your comprehension of the NFT ecosystem and its unique culture!

1/1

In the NFT world, "1/1" refers to an artwork or digital collectible that is unique, with only one instance ever minted, making it one-of-a-kind. This exclusivity means there are no duplicates or copies in existence, setting it apart from editions or series where multiple copies of an NFT may exist. Owning a 1/1 NFT signifies having a piece that is entirely unique, often increasing its value and desirability due to its rarity and singular nature. Artists and creators issue 1/1 NFTs to highlight special pieces or to offer collectors the opportunity to own something truly exclusive within the digital art and collectibles space.

1/1/X

A "1/1/X" NFT is a unique digital asset that is part of a larger series, where "X" represents the total number of items in the series. Unlike traditional "1/1" NFTs, which are singular and independent artworks, "1/1/X" NFTs maintain their uniqueness while also contributing to a cohesive collection. This classification is especially relevant in the context of long-form generative art, where each piece is generated with distinct characteristics but shares common elements or themes with the rest of the series. "1/1/X" thus combines the exclusivity of being one-of-a-kind with the broader narrative or aesthetic of the series, offering a nuanced approach to collecting and appreciating digital art.

AI Art

AI Art in the context of NFTs refers to artwork created with the assistance of artificial intelligence technologies. This form of art utilizes algorithms and machine learning to generate pieces that can range from paintings and illustrations to complex multimedia projects. AI art NFTs represent a merging of technology and creativity, where the algorithm itself or the collaboration between artist and AI produces unique digital works. These works are tokenized as NFTs on the blockchain, ensuring their uniqueness, ownership, and provenance.

Airdrop

An NFT Airdrop is a promotional strategy used by blockchain projects to distribute free NFTs to the wallets of community members or potential users. This approach is often employed to generate awareness, reward loyalty, or incentivize participation in a project or platform. By sending NFTs directly to users' wallets, projects can directly engage with their audience, foster a sense of community, and encourage interaction with their ecosystem. Airdrops can vary in terms of eligibility criteria, ranging from holding specific tokens, participating in community events, or simply signing up, making them a versatile tool for marketing and community building.

Alpha

In the NFT context, "Alpha" refers to insider or expert information that provides a competitive advantage or "edge" in making investment decisions. It's often shared within exclusive communities or groups and can include tips, upcoming project insights, or strategies that are not widely known to the public. Access to alpha can significantly impact one's success in the NFT market, as it allows for more informed decisions, potentially leading to higher returns on investments. It's a term borrowed from finance, symbolizing valuable information that can lead to outperforming the market.

Aping

"Aping" refers to the act of quickly and aggressively investing in a new NFT project or asset, often without thorough research. It's driven by fear of missing out (FOMO) on potential gains from early investments in what could become highly valuable NFTs. This term reflects a high-risk, high-reward approach where investors hope to capitalize on the early stages of an NFT's launch, banking on its future success and popularity in the volatile and speculative NFT market.

Blue Chip

In the NFT ecosystem, "Blue Chip" refers to NFT collections or projects considered highly valuable, stable, and with a strong likelihood of long-term profitability. These NFTs are akin to blue-chip stocks in the traditional investment world, characterized by their established reputation, consistent demand, significant brand power, and often, association with influential creators or communities. Blue-chip NFTs, such as CryptoPunks and Bored Ape Yacht Club, serve as prestigious assets within the digital art and collectibles market, representing a relatively safe investment compared to more speculative projects. They are sought after for their potential to maintain or increase in value over time, reflecting the high confidence investors place in their enduring appeal and market position.

Buy the Dip

"Buy the dip" refers to the strategy of purchasing assets after a decline in their value, with the expectation that the price will recover and increase. This approach is based on the belief that the dip represents a temporary market correction rather than a long-term trend, offering an opportunity to acquire assets at a lower price before an anticipated rebound. It's a common tactic among investors looking to capitalize on market volatility by timing their purchases to take advantage of price drops.

Buy the Rumour Sell the News

"Buy the rumour, sell the news" is a strategy where traders capitalize on the anticipation of an event rather than its actual occurrence. The idea is to purchase assets when speculative buzz builds up (the rumour) and sell when the anticipated news is released, often because the market's reaction to the news has already been priced in during the build-up. This approach hinges on the belief that asset prices tend to increase with speculative interest and drop following the actual news announcement, allowing traders to profit from the volatility.

CC0

CC0, short for Creative Commons Zero, refers to a licensing option that allows creators to relinquish their works into the public domain, enabling anyone to use, reproduce, and build upon the original work without restrictions. This license fosters a culture of open collaboration and creativity, allowing NFT projects to be freely shared, modified, and commercialized by anyone. It represents a shift towards more inclusive and community-driven development of digital assets, where the focus is on collective contribution and the broadening of access to digital art and creations. CC0 NFTs like CrypToadz are pivotal in democratizing the creation and distribution of digital content, encouraging innovation and expansion within the NFT space.

Colored Coins

Colored Coins are an early form of NFTs, originating on the Bitcoin blockchain around 2012. They represent a method of marking bitcoins with additional attributes, thereby "coloring" them to represent various assets such as property, stocks, or even art. By using the existing Bitcoin infrastructure, Colored Coins were able to assign real-world value and ownership to specific bitcoins, making them non-fungible. This concept laid the groundwork for the modern NFT, demonstrating the potential for blockchain technology to tokenize and manage ownership of unique digital and physical assets beyond traditional cryptocurrencies.

Counterparty

Counterparty, functioning as a Bitcoin sidechain, played a pivotal role in the history of NFTs (or proto-NFTs) by allowing the creation, buying, and selling of unique digital assets directly on the Bitcoin blockchain, like the popular Rare Pepes. Founded in 2014, it leverages Bitcoin's security and decentralization, offering a platform for users to mint NFTs without the need for a separate blockchain. This innovative approach not only showcases Bitcoin's versatility beyond a digital currency but also expands the possibilities for digital collectibles and assets, bridging the gap between Bitcoin and the burgeoning world of NFTs.

Cryptoart

Cryptoart refers to digital art or media tokenized into unique, non-fungible tokens (NFTs) on a blockchain, providing proof of ownership and authenticity for digital creations. This form of art has revolutionized how artists sell and distribute their works, enabling direct transactions without intermediaries and fostering a new economy of digital collectibles. Cryptoart ranges from crypto-themed digital paintings and animations to music and beyond, encapsulating a broad spectrum of creative expressions. It highlights the intersection of art and technology, where the blockchain's immutability offers a new paradigm for the ownership, collection, and appreciation of art in the digital age.

DAO

In the context of NFTs, a DAO (Decentralized Autonomous Organization) is a blockchain-based entity that operates without centralized leadership, governed by its members' consensus through smart contracts. DAOs are pivotal in the NFT ecosystem for project governance, collective investment, and decision-making regarding NFT projects and collections. Members of a DAO can propose, vote on, and implement actions related to the acquisition, creation, or sale of NFTs, leveraging collective wisdom and resources. This structure democratizes control and fosters a community-driven approach to managing and advancing NFT initiatives, allowing for transparent, secure, and equitable participation and benefit distribution among its members.

Degen

"Degen" is a colloquial term derived from "degenerate gambler," referring to individuals who engage in high-risk, high-reward investment strategies. These participants are known for their willingness to invest in speculative NFT projects, often based on hype or potential rather than solid fundamentals. The term embodies a culture of taking significant risks in the pursuit of substantial returns, emphasizing a more adventurous approach to navigating the volatile NFT market. While it can carry a negative connotation outside the crypto world, within the NFT space, it often represents a badge of honor among those who embrace this high-stakes investment style.

Drop

A "Drop" in the NFT space refers to the scheduled release or launch of a new series or collection of digital items as NFTs. This event is highly anticipated by the community, as it often represents the first opportunity for collectors and enthusiasts to acquire new, unique, or limited edition digital assets directly from creators or platforms.

Dutch Auction

A Dutch Auction is a sale mechanism where the price of an NFT starts high and decreases over time until a buyer is willing to purchase it. This reverse bidding process encourages potential buyers to wait for an acceptable price point, but also introduces the risk that someone else may purchase the NFT first. Dutch Auctions are utilized for NFT drops to establish fair market value and mitigate gas wars, allowing for a more orderly sale process. This auction type balances the urgency to buy with the incentive to get a better deal, making it a dynamic and strategic approach to purchasing NFTs.

ERC 1155

ERC-1155 is a versatile Ethereum token standard designed for the efficient creation and management of both fungible (like cryptocurrencies) and non-fungible tokens (NFTs) within a single smart contract. This innovation allows for the minting of multiple token types, streamlining transactions and reducing gas fees. It supports the development of complex asset systems in games and applications, enabling a unified, gas-efficient approach to asset management on the blockchain.

ERC 404

ERC-404 is an experimental Ethereum standard that enables the fractionalization of NFTs, creating a new type of asset that bridges the gap between fungible (ERC-20) and non-fungible tokens (ERC-721). This innovative approach enhances liquidity and offers more flexibility in the NFT market by allowing multiple owners for a single NFT asset. Through its unique mint and burn strategy, ERC-404 facilitates a hybrid form of asset ownership, expanding the possibilities for creators and investors in the digital space.

ERC 6551

ERC-6551 is a novel Ethereum standard for NFTs that introduces the concept of token-bound accounts, enabling NFTs to function as smart contract wallets. This groundbreaking standard allows each NFT to hold other tokens and NFTs, effectively turning them into individual wallets that can interact with various smart contracts. This innovation not only enhances the functionality and utility of NFTs but also opens up new possibilities for their use in gaming, the metaverse, DAOs, and beyond, by facilitating a more complex and integrated digital asset ecosystem on the Ethereum blockchain.

ERC 721

ERC-721 is a free, open standard that describes how to build non-fungible or unique tokens on the Ethereum blockchain. It is the most common standard for issuing non-fungible tokens (NFTs), allowing for the representation of ownership over digital or physical assets. CryptoPunks, one of the first NFT projects on Ethereum, directly inspired the initial drafting of ERC-721 (2017/2018), setting the foundation for the diverse and expansive NFT ecosystem observed today.

Flippening

The term "Flippening" originally described a hypothetical scenario where Ethereum surpasses Bitcoin as the largest crypto asset by market capitalization. In the NFT space, it has similarly been used to denote instances where one project, such as Bored Ape Yacht Club (BAYC), overtakes another, like CryptoPunks, in terms of market dominance or floor price. This concept reflects the dynamic and competitive nature of the crypto and NFT markets, where community support and market valuation can rapidly shift.

Floor

In the NFT space, "Floor" is shorthand for the floor price of a collection, representing the lowest ask price at which an item from the collection can be purchased. This price serves as a baseline value for the collection, indicating the minimum investment needed to acquire a piece from it. The concept of floor price is crucial for investors and collectors to understand market dynamics, as it offers a snapshot of the collection's accessibility and demand.

Floor Market Cap

The "Floor Market Cap" of an NFT collection is calculated by multiplying the number of items in the collection by the floor price, which is the lowest price at which an item in the collection can currently be bought. This metric offers a valuation of the entire collection based on the minimum sale price of its items, providing a broad indicator of the collection's overall market value. It helps investors and collectors understand the baseline economic size of the collection within the NFT marketplace, combining quantity with the accessible entry price point.

Gas War

A "Gas War" in the context of NFTs refers to a situation where users aggressively bid against each other with higher transaction fees (gas fees) to prioritize their transactions on the blockchain, especially during high-demand NFT drops. This competition leads to inflated gas fees, making transactions more expensive and sometimes excluding participants who cannot afford the increased costs. Gas wars typically occur during the launch of popular NFT collections, causing network congestion and significantly higher costs for transaction processing.

Generative Art

Generative art refers to art that is created with the use of an autonomous system, such as algorithms, rules, or software, which independently determines features of the artwork. It can involve various mediums and techniques, including digital, drawing, painting, and sculpture, where the artist creates the process that generates the artwork, often resulting in unique and unpredictable outcomes. It has become very popular in the NFT space and gave birth to the concept of on-chain generative art.

Genesis Collection

In the NFT space, the term "Genesis Collection" refers to the first, initial collection launched by brands or projects for a specific endeavor. It symbolizes the inaugural series of NFTs that a project releases, often laying the foundational ethos, aesthetics, and value proposition that define the project's identity and future direction.

GM

GM, short for "Good Morning," is a friendly greeting widely adopted within the cryptocurrency and NFT communities, especially on Twitter. It's used to promote positivity, foster camaraderie, and build a sense of community among participants. This term signifies more than just a morning salutation; it's a cultural staple that signals belonging and engagement within the digital asset space. Its usage exemplifies the inclusive and optimistic ethos prevalent among crypto enthusiasts and NFT collectors.

God Candle

In crypto and NFT trading, a "God Candle" refers to an exceptionally large candlestick on a chart that indicates a significant and sudden movement in price, usually upward, driven by high volume. This can signal a strong buy-in from investors or a sudden surge in interest, often leading to a change in market momentum or the start of a new trend. The term is used to highlight moments of extraordinary market activity, underscoring the powerful impact such movements can have on the perception and valuation of cryptocurrencies and NFTs. It's a term that captures both the awe and the volatility inherent in digital asset markets.

Grail

In the NFT world, "Grail" is used to describe a highly sought-after or ultimate NFT that someone dreams of owning. It typically refers to an NFT that is rare, valuable, or has a significant personal or collective meaning. Whether it's due to its rarity, the artist's reputation, or its unique traits, a Grail NFT is considered the pinnacle of one's NFT collection. This term conveys the passionate pursuit of collectors to acquire a piece that represents the highest level of desirability and achievement within the NFT space, akin to the quest for the Holy Grail in Arthurian legend.

Have Fun Staying Poor

"Have Fun Staying Poor" is a taunting expression popularized by cryptocurrency enthusiasts to mock skeptics and detractors of the crypto market or specific project they endorse. It's typically used in online forums and social media as a retort to individuals who express doubt about the viability or future success of certain tokens or NFTs, implying that their skepticism will result in missed financial opportunities.

Inscriptions

"Inscriptions" originally referred to embedding data, such as images, videos, or text, onto individual satoshis on the Bitcoin blockchain. This technique, enabled by the Ordinals protocol, allowed for the creation of unique, non-fungible tokens directly on Bitcoin, offering a novel method to mint, collect, and trade digital assets with the security and immutability of Bitcoin. Recently, the concept of inscriptions has extended beyond Bitcoin to include other blockchains, including EVM networks.

IP (Intellectual Property)

In the context of NFTs, Intellectual Property (IP) refers to the legal rights assigned to the creator of a unique digital asset, encompassing artworks, music, videos, and other forms of digital content. These rights can include copyright, trademarks, and patents, ensuring creators have control over their work's use, distribution, and monetization. NFTs, by tokenizing digital assets on the blockchain, offer a new way to assert and transfer IP rights, allowing creators to maintain ownership while facilitating proof of authenticity and provenance for collectors and investors.

IRL (In Real Life)

"IRL" (In Real Life) refers to the physical world and experiences outside the digital realm. It contrasts with the virtual or digital space where NFTs exist. IRL in NFTs emphasizes events, merchandise, or experiences that connect the digital ownership and value of NFTs with tangible, real-world interactions or goods. This concept bridges the gap between virtual assets and their physical counterparts, enhancing the value and utility of NFTs by extending their influence beyond digital platforms into real-life applications and experiences.

JPEG

"JPEG" colloquially refers to digital artworks represented as NFTs on blockchain technology. These JPEGs, once mere image files, are transformed into unique, verifiable assets that can be bought, sold, and collected, allowing artists and creators to monetize digital art through provenance and scarcity.

L2

"L2" refers to Layer 2 scaling solutions built on top of existing blockchain networks, like Ethereum, to improve transaction speeds and reduce costs. These solutions are crucial for NFT transactions, making it easier and more affordable to mint, buy, and sell NFTs. L2 technologies include rollups, sidechains, and state channels, each offering a way to handle transactions off the main blockchain (Layer 1) while leveraging its security and decentralization. This innovation is vital for scaling NFT projects and platforms, ensuring they can support a growing user base and increasingly complex applications without compromising performance or security.

LAND

The word "LAND" in the NFT space refers to parcels or plots within a metaverse or virtual world that are bought, sold, and owned as non-fungible tokens. These digital assets represent ownership of virtual real estate, allowing owners to develop, monetize, or simply hold these parcels as part of broader virtual communities and experiences. LAND embodies a key aspect of digital property and spatial presence in virtual environments.

Launchpad

An NFT Launchpad is a platform designed to support the launch and promotion of new NFT projects. It provides creators with the tools and services necessary to mint, market, and sell their NFTs effectively. These platforms often offer features such as fundraising, community building, and early access for investors, helping creators to maximize the reach and success of their NFT launches. Launchpads play a crucial role in the NFT ecosystem by facilitating the introduction of innovative digital art, collectibles, and utility-based tokens to the market, ensuring a streamlined path from creation to sale.

LFG

"LFG" is a rallying cry that stands for "Let's Fucking Go." It embodies a sense of excitement, urgency, and community momentum around a project, launch, or general enthusiasm within the NFT space. This expression is often used to motivate, celebrate, or express anticipation and support among participants and enthusiasts as they embark on new ventures, releases, or to signify a collective movement towards success in the dynamic and fast-paced world of NFTs.

Metadata

"Metadata" refers to the data providing detailed information about the NFT itself. This includes attributes such as the creator's identity, ownership history, provenance, and specific characteristics like the item's name, description, and digital properties (e.g., image or video files, artwork dimensions). Metadata plays a critical role in distinguishing one NFT from another, ensuring authenticity and provenance. It can be stored on-chain for immutability and permanence or off-chain to allow for more complex data. The metadata structure allows NFTs to carry a rich set of information beyond just the digital asset, facilitating a deeper connection and understanding between the creator, the asset, and its collector.

Minting / Mint

Minting is the process of creating a new non-fungible token by interacting with a blockchain's smart contract, often involving a transaction where the set price is paid to acquire the item. The outcome, known as a mint, can either be predetermined or randomly generated at the time of purchase, with the transaction's metadata serving as a source of randomness to define the item's unique attributes. This process turns digital assets into part of the blockchain, ensuring their uniqueness and ownership.

Mint Pass

A Mint Pass in the context of NFTs is a special token that grants its holder the right to mint an NFT, or a series of NFTs, usually before the general public sale. This early access pass can be bought, earned, or given as a reward, offering exclusive privileges such as guaranteed access to limited editions or special pricing. Mint Passes are utilized by creators and projects to engage and reward their community, manage demand, and build anticipation for upcoming releases. By owning a Mint Pass, holders can secure their spot in a highly anticipated NFT drop, ensuring they don't miss out on acquiring a coveted asset.

Mooning

"Mooning" refers to the rapid and substantial increase in the value or price of an NFT or a collection of NFTs. This term, borrowed from crypto slang, signifies a bullish market trend where assets experience exponential growth, often leading to significant profits for holders. The phenomenon of mooning reflects the speculative nature of the NFT market, where the demand for certain digital assets can skyrocket, driving up prices and generating hype and excitement among investors and collectors.

NFA

"NFA" stands for "Not Financial Advice." This acronym is commonly used in social media posts, discussions, and communications related to NFTs and cryptocurrency investments. It serves as a disclaimer, indicating that the information shared or opinions expressed are not professional financial advice and should not be taken as such. The term emphasizes the importance of doing one's own research and consulting with a financial advisor before making investment decisions, acknowledging the speculative and volatile nature of the NFT and crypto markets.

NFTfi

NFTfi, short for NFT Finance, is an innovative financial mechanism that merges the worlds of NFTs and DeFi (Decentralized Finance). It enables the collateralization of NFTs for loans and other financial instruments, allowing NFT owners to leverage their digital assets for liquidity without selling them. This process is facilitated through peer-to-peer platforms that connect NFT holders with liquidity providers via permissionless smart contract infrastructure, offering secured loans in various cryptocurrencies.

OG

"OG" stands for "Original Gangster," a term borrowed from early hip-hop culture to denote authenticity, respect, and pioneering status. Within the NFT community, it refers to early adopters who have been collectors of a project or members of a community from its inception. These individuals often possess a deep understanding of the project, contribute significantly to its culture, and are usually respected within the community for their early support and contributions. The term highlights their foundational role and often comes with a sense of prestige and recognition in the evolving landscape of digital collectibles and blockchain projects.

Open Edition

An "Open Edition" in the context of NFTs refers to a type of NFT sale that allows an unlimited number of NFTs to be minted within a specific collection for a certain period. This model contrasts with limited editions, where only a predetermined number of NFTs are available. Open Editions can have time limits or remain open indefinitely, aiming to make NFT ownership more accessible and inclusive by lowering price barriers and allowing broader participation from the community.

Ordinals

Ordinals are a method for creating Bitcoin NFTs by attaching data (images, videos, music), to an individual satoshi, the smallest unit of the first blockchain ever created. This process turns each satoshi into a unique digital asset, effectively creating non-fungible tokens on the Bitcoin blockchain. Introduced by developer Casey Rodarmor in 2023, ordinals inscribe information directly onto the Bitcoin blockchain, leveraging its security and immutability to ensure the uniqueness and ownership of digital content.

Points / Point Farming

"Points" and "Point farming" refer to rewards earned by users for engaging with certain NFT platforms or projects like Blur. These points can often be exchanged for the platform's native cryptocurrency or for special access to NFT drops, exclusive content, or other benefits. The mechanism encourages active participation and engagement within the platform or project ecosystem, rewarding users for tasks such as staking NFTs, participating in community events, or contributing to the platform's growth. Point farming can provide a way for users to earn value and gain additional benefits from their involvement in the NFT space.

Post-photography

Post-photography in the context of NFTs describes an era or practice beyond traditional photography, embracing digital manipulation, generative art, and AI technologies to create or alter images. It signifies a shift from classic photographic techniques towards innovative methods that leverage digital tools for artistic expression. This approach challenges traditional notions of photography, offering new perspectives and possibilities for creation, distribution, and ownership in the digital realm. Post-photography as applied to NFTs reflects the blending of old and new mediums, where digital assets gain unique value and significance within the blockchain ecosystem, marking a new chapter in the evolution of photographic art.

Rarity Index

A "Rarity Index" is a quantitative measure that assesses the scarcity and uniqueness of a non-fungible token within its collection. This metric is crucial for determining the value of an NFT, as it highlights the rarity of certain traits or characteristics compared to others in the same series. The Rarity Index helps collectors and investors identify and prioritize NFTs that possess unique attributes, making them more desirable and potentially valuable in the market. It's calculated using various methods, including trait rarity scores and comparative analysis within the collection.

Right Click and Save

"Right Click and Save" in the context of NFTs refers to the critique or joke about the perceived value of NFTs, highlighting that digital images represented by NFTs can easily be copied or saved by anyone with a simple right-click. Critics use this argument to question the value of owning a digital asset that can be freely duplicated. However, proponents of NFTs argue that while the image itself can be copied, the ownership, provenance, and unique digital signature verified by blockchain technology cannot, distinguishing the original NFT from mere copies.

REKT

"REKT" is a slang term derived from "wrecked," signifying someone who has experienced significant financial loss, often due to a sharp market downturn, liquidation, or a poor investment decision in the volatile NFT market. It captures the moment when an investor's assets are severely devalued or become nearly worthless, highlighting the high-risk nature of investing in digital assets and the importance of market awareness and strategy.

Reveal

"Reveal" denotes the event when the specifics or visuals of an NFT are disclosed to its owner after the initial purchase or minting. Often, buyers acquire an NFT featuring a placeholder image, and its true content is unveiled at a later stage, as decided by the project team. This mechanism adds an element of surprise and anticipation for collectors, as the actual value or rarity of the NFT becomes apparent only upon the reveal. It's a strategic approach utilized by creators to maintain engagement and excitement within their community, particularly in generative art projects where each piece's characteristics are unknown until the reveal.

Royalties

"Royalties" refer to a percentage of the resale price paid to the original creator or rights holder of the NFT whenever it is resold. This mechanism ensures ongoing compensation for the creator's work and incentivizes them to produce high-quality and valuable content. Royalties are encoded into the NFT smart contract, enabling automatic distribution each time the NFT changes hands on secondary markets.

Runtime Art

Runtime Art NFTs refer to digital artworks that are not only unique or limited by nature but also dynamic, evolving in response to data, interactions, or other predefined conditions. Unlike traditional static NFTs, Runtime Art like Terraforms can change appearance, form, or content, offering a living, breathing digital experience. This form of art leverages blockchain technology to create interactive, programmable art pieces that can evolve over time, react to external inputs, or even generate new content autonomously. The Ethereum Virtual Machine, for example, enables such complexity, allowing artists to push the boundaries of creativity and collectors to engage with art in new, interactive ways.

RWA

The acronym RWA stands for "Real-World Assets," which refers to the practice of transforming tangible assets from the physical world, such as real estate, art, or even vehicles, into digital tokens on the blockchain. This innovative process enables these assets to be bought, sold, and traded on digital platforms, offering enhanced liquidity, fractional ownership opportunities, and global accessibility. RWAs bridge the gap between traditional asset ownership and the digital economy, allowing for a seamless integration of real-world value into the burgeoning digital asset space.

Secondary Market

The "Secondary Market" in the context of NFTs refers to the marketplace where NFTs are bought and sold after their initial sale or minting. This market is crucial for determining the real-time value of NFTs based on demand and supply. It allows collectors and investors to trade NFTs, potentially at a profit or loss, based on their market value, providing liquidity and enabling price discovery beyond the primary issuance.

Soulbound Tokens (SBTs)

Soulbound Tokens are non-transferable NFTs that represent an individual's credentials, affiliations, achievements, or memberships in a digital context. They are inherently tied to one's digital identity or wallet, ensuring that these tokens cannot be sold or transferred to others. This concept is instrumental in building a decentralized society where provenance and personal reputation are pivotal. SBTs enable a verifiable, blockchain-based record of personal achievements and affiliations, fostering trust and accountability in online and decentralized environments.

Store of Value (SoV)

In the context of crypto and NFTs, a Store of Value (SoV) is an asset that maintains its value over time without depreciating. Cryptocurrencies like Bitcoin and Ether, and even some blue-chip NFTs like CryptoPunks can be considered SoVs, because they are designed to be scarce and resistant to inflation, making them a digital alternative to traditional stores of value like gold. The concept hinges on the asset's ability to preserve purchasing power, making it a reliable means of saving or investing funds with the expectation that it will retain or increase its value over the long term.

Sweep the Floor

"Sweep the floor" refers to the action of purchasing all or a significant portion of a collection's NFTs that are listed at their floor price. The floor price represents the lowest current price at which an NFT in the collection can be acquired. This strategy is often employed by investors or collectors looking to quickly acquire multiple assets at the lowest available price, either as a speculative investment move or to influence the market dynamics of the collection by potentially raising the floor price through their bulk purchase.

VC

"VC" stands for Venture Capital, referring to investors or firms that provide capital to startups showing high growth potential, including those in the NFT sector. VCs play a crucial role in the NFT ecosystem by funding innovative projects and platforms, helping them to develop and scale. Their investment is pivotal for projects that aim to revolutionize how digital assets are created, shared, and monetized, enabling new forms of artistic expression, ownership, and community engagement within the blockchain space. Venture capital investment in NFTs indicates a belief in the long-term value and impact of digital assets and blockchain technology.

Whale

A "Whale" refers to an individual or entity that owns a significant quantity of NFTs or holds a large amount of cryptocurrency. These players have enough financial power to influence market trends, prices, and liquidity within the NFT ecosystem. Whales often hold valuable collections, including high-profile and blue-chip NFTs, and their buying or selling actions can significantly impact the market dynamics, causing fluctuations in asset prices and market sentiment. Their movements are closely watched as indicators of market health and future trends.

Whitelist (WL)

A whitelist in the NFT realm is a curated list of wallet addresses granted priority access to mint or purchase an NFT collection before it becomes available to the general public. This early access is often rewarded to early supporters, community members, or participants in pre-launch activities, allowing them to secure NFTs at potentially lower prices or ensure ownership before wider release. Whitelists are a strategic tool for project creators to build hype and reward community engagement.

xNFT

An xNFT (executable NFT) is a novel token standard on the Solana blockchain, signifying tokenized code that represents ownership rights over its execution. These innovative digital assets merge the characteristics of NFTs with functional applications, allowing them to act as operable web3 applications. xNFTs extend the utility of traditional NFTs beyond collectibility, enabling active interaction and engagement within the digital ecosystem, thus opening up new avenues for creators and users alike.