Web3 Terms – NFT Domains 101

Web3 Terms - NFT Domains 101

You’re ready to buy your first token, and you’re researching what NFT domains are including their pros and cons, and you stumble across some strange terms that you’ve never seen before.

NFT domains are decentralized on the blockchain, they can be transferred from one wallet to another, and many cryptocurrencies are accepted, such as Bitcoin and Ethereum. If this last sentence doesn’t make any sense to you, make sure to read this glossary until the end to feel more comfortable as an investor in the industry. These terms are valid for both the NFT domain world and everything related to cryptocurrencies.

  • ATH- All-Time High – the most expensive cost an asset (cryptocurrency, NFT, NFT domain, etc.) has at any point had.
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  • ATL- All-Time Low – the cheapest cost an asset (cryptocurrency, NFT, NFT domain, etc.) has at any point had.
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  • Bear Market – an extended time of decrease in a financial market.
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  • Bearish – like a bear market, this alludes to having a negative viewpoint of a market or asset’s worth. Assuming that you are negative on a specific crypto coin, you have the firm belief that its worth will diminish over the long run.
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  • Bitcoin (BTC) – the first decentralized, shared, advanced cryptocurrency, created by a person with the pseudonym of Satoshi Nakamoto back in 2009. It is the most expensive, versatile, and accepted currency.
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  • Blockchain – an open computerized record used to store and move data without the requirement for a central entity. Blockchains are the innovation on which cryptocurrency conventions such as Bitcoin are constructed.
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  • Bullish – we use the term bullish when having a hopeful point of view that a market or coin will increase in cost. Assuming you’re bullish on Ethereum, you think that its worth will keep on rising over the long run.
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  • Burn – burning means eliminating tokens from a crypto supply, usually finished by sending them to an out-of-reach wallet address. Other digital assets, like NFTs and NFT domains, can likewise be burned using a similar process.
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  • Centralized – a hierarchical design where authorities and their entities are concentrated inside a little gathering of leaders and decision-makers – usually governments.
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  • CEX- Centralized Exchange – a centralized exchange is a platform where users can trade, buy, or sell cryptocurrencies. These platforms are centralized, meaning controlled and monitored by entities like Coinbase and Binance.
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  • Coin – a coin is essentially the digital equivalent of a physical currency, but money is based on its own local blockchain in the crypto market. Among the most potent and valuable coins, we can find Bitcoin, Ethereum, Solana, and Litecoin.
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  • Collateral – any asset acknowledged as security for a credit or a loan. For example, an actual asset like land, or a digital one like an NFT or a blockchain domain.
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  • Cryptocurrency – an advanced digital asset intended to be utilized as a mechanism of trade. Digital forms of money are borderless and secure and kept up with by blockchains instead of brought together on state-run administrations.
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  • DAO- Decentralized Autonomous Organization – an association of open-source code administered by its users. DAOs typically center around a particular undertaking and exchange the hierarchical frameworks of inheritance corporations for rules on the blockchain.
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  • Dapp – Decentralized Application – an application based on open-source code that is hosted on the blockchain. Dapps are free of centralized groups or figures and frequently boost their users, compensating them with coins or some assets.
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  • Data – with regards to the web, data refers to a client’s own data, like name and surname, age, demographics, interests, browsing history, preferences, and much more.
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  • Decentralized – Fundamentally, the opposite of centralized. A decentralized system is free of authorities’ control – usually a government.
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  • DEX- Decentralized Exchange – a shared digital currency trade based on the blockchain. A decentralized exchange is controlled by its users and smart contracts rather than a unified organization. The most typical example is Uniswap.
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  • Ethereum (ETH) – like Bitcoin, ETH is another helpful coin in the crypto market and allows the purchase of NFT domains, NFTs, pay gas fees, and more. But apart from that.
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  • Fiat – a real-world currency regulated by a government like the USD, the CAD, or the GBP.
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  • Fungible – an interchangeable asset; replaceable with a different asset of the same type. For example, currencies are fungible; you can exchange US Dollars for Canadian Dollars.
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  • Gas – a fee charged to a user to process a financial transaction and validate a smart contract. For instance, on top of the NFT domain cost, a transaction fee will be applied to issue the contract. Typically, these fees would be minimal when using a credit card, but they can even get to thousands of dollars on decentralized platforms.
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  • Liquidity – how effectively an asset can be purchased, sold or exchanged on the market.
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  • Liquidity Pool – a collection of funds from users locked by a smart contract on the blockchain to work with exchanging on a DeFi stage. On decentralized platforms, the liquidity pool has to be gathered by the users since there is no funding by any government or central government.
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  • Market Cap – the total worth of a coin or asset because of its present market cost. A cryptocurrency market cap is made by increasing the price of a single currency by its supply.
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  • Metaverse – a hypothetical and organized internet-based space with digital assets and conditions that users possess – these users become avatars in this online world. The metaverse is, simply put, the future of the internet as we know it now. The metaverse is accessed through different devices and using augmented reality.
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  • Minting – minting is the process of validating a token and its information and registering it on the blockchain. For instance, we “mint” an NFT or an NFT domain.
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  • NFT Domains – domains registered on the blockchain instead of centralized platforms. NFT domains are fully controlled by their owner and can be used for several purposes, such as replacing a crypto address or building an online gallery. As opposed to normal domains ending in .com or .net, these end in .x, .coin, .wallet, or .crypto, to name only a few.
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  • NFT (Non-fungible token) – NFT are the opposite of fungible tokens. A non-fungible token is a digital certificate utilized to verify a digital asset’s ownership. Unlike fungible assets, NFTs cannot be exchanged for other assets of the same kind. For instance, a domain bought on Cloudname cannot be exchanged with another one.
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  • Seed Phrase – a sentence made up of random words used as a password – generally for a crypto wallet. For example, a seed phrase could be “station wallet home fact sky computer vault”. Since a wallet can host several accounts, this seed phrase is the master password to access all of them.
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  • Smart Contract – smart contracts are issued when purchasing a digital asset such as an NFT domain and serve as an intermediary without other people or authorities involved. For instance, a smart contract will be issued to an investor by the seller when buying an NFT.
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  • Wallet – an application or device used to store private keys to blockchain resources and assets like cryptocurrencies, NFT domains, and NFTs. In contrast to a traditional wallet, a wallet hosted on the blockchain doesn’t actually store the assets themselves and, instead, their keys and smart contracts. The most popular wallets on the blockchain are Metamask and Coinbase.
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  • Web3 – the latest incarnation of the web, which highly influences blockchain innovation and open-source applications. Of course, the decentralization of data and personal information will be processed too. Web3 targets the removal of control of the web from monopolistic tech organizations.