Key Terms To Know About NFTs & Web3

Learn the most widely used terms in Web3

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Blockchain – publicly-accessible digital ledger that records transactions and information across a decentralized network. Blockchains are the core technology on which cryptocurrency protocols are built.

Crypto wallet – A software application or hardware device used to store and retrieve digital Items, like cryptocurrency and NFTs.

Ethereum (ETH) – Open-source blockchain with smart contract functionality that uses the Ether cryptocurrency to facilitate transactions.

Gas fees – Transaction costs on the Ethereum blockchain. These are determined by supply/demand across the network, not by any specific marketplace.

Non-Fungible Tokens (NFTs) – Certificates of authenticity that prove ownership of unique, digital assets on the blockchain. NFTs can represent digital art, unique collectibles, virtual reality items, crypto domain names, ownership records, and more.

Wallet address – A unique "public key" used when individuals are sending cryptocurrency or NFTs. Unlike a traditional wallet a crypto wallet will not store the assets, only the key to that address.

Ethereum Name Service (ENS) – A protocol for human-readable crypto addresses and domain naming system based on the Ethereum blockchain. Individuals can send NFTs and cryptocurrency to them.

Private key – An alphanumeric passcode representing your signature required to authorize transactions on the blockchain.

Seed phrase – A list of words used as a master password to access a crypto wallet. Typically ranges from 12-24 words. This can be used to recover your crypto in case you forget your password or lose access to your wallet.

Decentralized app (Dapp) – A digital application or program that requires you to connect and approve all transactions with your wallet signature. These exist and run on a blockchain or peer-to-peer network of computers.

Smart contract – Self-executing contracts with the terms of the agreement between parties being directly written into lines of code. Both code and included agreements contained exist across a blockchain or peer-to-peer network of computers.

 

Review a comprehensive Web3 glossary at this link.