NFT Dictionary

A non-fungible token is a financial security consisting of digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded.

In simple terms, minting is the act of adding, validating, and recording an NFT to the blockchain. Once minted, the NFT is available for public consumption and can be viewed, bought, and traded on the open marketplace. That said, NFTs don’t have to be made public and can be kept private.

The locking up of NFTs on a platform or protocol to receive staking rewards and other privileges. This allows NFT holders to earn a passive income while still maintaining ownership of their NFTs.

Blockchains are distributed databases used to securely store data and information in a publicly accessible way. Rather than relying on a single centralized server, blockchain-powered crypto networks store data across distributed devices (nodes) worldwide. Ultimately, these distributed devices can be anything, such as computers, laptops, or even bigger servers. They serve as the framework of the blockchain, communicating with each other to enable the storage, spread, and preservation of data without the need for a trusted third party. Thanks to nodes, the blockchain provides an immutable record — it’s a decentralized proof of ownership vehicle that is unlike anything we’ve seen before.

Ethereum is the primary blockchain used in the Web3 ecosystem due to its size and security. It’s the most popular blockchain for NFTs for the same reason. Ether is the native cryptocurrency of the Ethereum blockchain. It’s used to power all transactions that happen on the blockchain, including peer-to-peer payments, NFT trading, crypto gaming, and more.

The payment individuals make to complete a transaction on a blockchain. These fees are used to compensate blockchain miners for the computing power they have to use to verify blockchain transactions, and they are typically paid in the blockchain’s native cryptocurrency. The price fluctuates based on network congestion. As a result, the more people using the network, the higher the gas fee.