A must-have for NFT newbies! 30 NFT jargons you must know!

Since Facebook's parent company changed its name to Meta, the Metaverse craze has attracted great attention from the market, and many NFT websites and communities have sprung up like mushrooms after a rain. Whether you are paying attention to NFT or the Metaverse or not, NFT-related words have frequently appeared in social media and daily life in the past period of time, including terms such as blockchain, Bitcoin, Ethereum, and Bored Ape...

If you are like me and have ever been confused about NFT, and feel that there are so many terms, so complicated, and so hard to understand, we have made a simple classification based on the content of NFT terminology, and listed a quick and easy package to help you understand the Metaverse and NFT painlessly!

NFT terminology

NFT Non-Fungible Token

NFT is composed of three English words: non fungible token. It is a unique and verifiable digital asset that exists on the blockchain, making things that look the same have different values. For example, we have two 100-yuan New Taiwan dollar bills today, one has Teresa Teng’s signature and the other does not. Although they look the same, the value of the two New Taiwan dollar bills may be different.

DAO Decentralized Autonomous Organization

DAO is pronounced as "Dao" and is the abbreviation of Decentralized Autonomous Organization, which means decentralized governance organization.

Unlike traditional organizational structures, where decisions are made by a small number of senior executives and executed by lower levels, DAO’s decisions are made from the bottom up. Everyone in the blockchain ecosystem can participate in decision-making and operate in a “direct democratic” manner.

Smart Contact Smart Contract

The program stored on the blockchain will run automatically when specific conditions are met, allowing buyers, sellers, and financial flows of NFT transactions to execute and confirm the results according to the pre-negotiated contract content during NFT transactions, without the need for other middlemen to operate or wait.

Cold Wallet

The device used to protect the private key of the cryptocurrency wallet is called a cold wallet because it does not connect to the Internet.

There are authorized transactions between USB devices, cards and APP for verification.

Hot Wallet

Wallets are run on devices such as computers and mobile phones that can connect to the Internet. On computers, they are usually accessed using browser extensions, or installed on mobile apps as programs to authorize transactions.

Mystery Box

It refers to the packaging method in which specific NFTs are randomly loaded. At the time of purchase, the buyer is not sure what the contents are until the conditions for opening the blind box are met. It is a bit like gashapon and lottery to create surprises.

SocialFi Social Finance

SocialFi is a combination of two English words: Social+Finance, which means that it is a financial system based on social interaction. In SocialFi, you can bind your original artwork to NFT to increase the frequency of interaction between communities and create value among groups.

GameFi Game Finance

GameFi is a combination of the two English words Game+Finance. It is a financial system built on games. It uses NFT props to achieve the concept of Play to Earn. You can get corresponding token rewards by completing tasks or defeating monsters.

Airdrop

An activity where the recipient receives cryptocurrency or NFT for free, often used in sweepstakes or to add value to NFTs.

Mint

The process of generating NFTs on the blockchain is called minting.

Burn

The process of destroying NFTs on the blockchain is called burning.

Stake

Lock NFTs or cryptocurrencies in smart contracts to receive additional rewards.

Floor Price

Refers to the lowest purchase price in a series of NFT collectibles.

Floor Sweep

It means buying a large number of the cheapest NFTs from the same series on the secondary market. The project team sometimes does this to increase the floor price, sometimes the community asks them to protect their own projects, and of course it is also possible that some large investors who are optimistic about the project will buy in at once to expand their influence on the project.

FOMO

It refers to the act of buying something because of the fear of missing out.

Gas Fee

It can also be called the mining fee, which refers to the fee required to successfully conduct transactions or execute smart contracts on the blockchain. It can also be called the handling fee in real life. The level of the fee depends on the activity on the blockchain. The more people trade at the same time, the higher the gas fee will be.

Whitelist Whitelist

A whitelist of NFTs is a list of NFTs that are guaranteed to be minted at a specific date and time. Sometimes there will be early bird price discounts, and it can achieve the effect of batch casting to avoid gas fee wars.

Roadmap

Used to describe the future goals, expected outcomes and milestones of the NFT to potential buyers. Not all successful NFT projects need a roadmap, but it sometimes helps buyers better understand what the project is trying to do.

Liquidity

Refers to the ease with which an asset can be converted into cash or other assets without affecting its market price. For example, if you want to buy a computer worth NT$80,000, if you have NT$80,000 in cash, you can buy it whenever you want, so cash has the highest liquidity. But if you don’t have enough cash but have an NFT worth NT$80,000, it is unlikely that you can directly exchange the NFT for a computer, so you have to sell your NFT to get cash to buy a computer.

However, because NFTs may not be sold immediately for $80,000, if you need money urgently, you may need to sell your NFTs at a lower price to get cash as soon as possible.

Metadata

Defining the appearance of an NFT artwork or collectible and giving it different attributes contains the necessary and unique data of the NFT, so sometimes you have to update the metadata to see what the blind box looks like after opening.

NFT Group Code

Diamond hand Diamond hand

Used to describe investors who do not panic and sell their assets when prices fluctuate. Such investors have a higher risk tolerance, implying that they have a better chance of getting high returns if they can withstand the pressure.

Paper hand

Used to describe investors who easily sell when prices fluctuate.

Whale

People who have a lot of money to invest or have already invested in high-value NFT projects. The influence of whales is important because they have the ability to move the market, and some speculators also track the wallet addresses of whales to follow specific funds for investment.

Community Greetings

GM

GM means Good Morning, which means "good morning"~

We say good morning to each other and say good morning to friends in the community to end a beautiful day:)

GN

GN means Good Night, which means "good night" (same as GM!)

Let's say goodnight to each other~ Say goodnight to your friends in the community to end a beautiful day:)

Ser

Ser means Sir, which is a respectful way of addressing someone.

Usage: Ser, I love my Dragon Tiger Gate NFT!

Mam

Abbreviation of Ma’am, meaning "Lady".

Usage: Mam, I love my Dragon Tiger Gate NFT!

Fren

Fren means Friend.

In the Metaverse we are all friends, happily pursuing NFTs together.

GMI/WAGMI

GMI is the abbreviation of Gonna Make It, which means "we will succeed", and WAGMI is the abbreviation of We All Gonna Make It, which means "we will all succeed". The happy state when everyone understands why we bought those JPG files.

DYOR

The abbreviation of Do Your Own Research, which means "Do the research you should do", is used in various content as a disclaimer, indicating that readers and viewers should be responsible for their own purchases and investments.

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