Web 3.0, the next iteration of the internet, is a concept that is being discussed more and more in tech circles. Especially as its central ideas are based around important concepts that tie into the NFT space. Both are quite closely linked and, to help you understand more about them, we’ve come up with a little guide of terms you should know if you want to get into NFTs.
What is Web 3.0?
Web 3.0 – or Web3 as it is known – is the next generation of internet services. While Web 1 was all about learning, and Web 2 was all about creating, Web 3 is all about owning.
In this version, the web is a decentralised online ecosystem built on the blockchain. That means that no one company, organisation or entity completely owns the internet, but every user can own certain parts of it and affect change through their creations and transactions on the blockchain.
As we said, Web 3 is an important part of the NFT world, and here are the terms you need to know to navigate it.
Airdrop is the term used to refer to bonuses or free collectables. This is a way of promoting a new NFT or adding to the popularity of an existing one. They are promotional tools that can increase the user base for an NFT collection
A blockchain is a digitally distributed, immutable ledger in which recording transactions and tracking assets are facilitated. You can think of it as a decentralised or distributed database.
A collection is a body of work, like a store or gallery and refers to a series of NFTs all grouped together. An NFT collection can be grouped by the owner in any particular way they want, maybe by artist or theme.
A crypto wallet is an application or hardware device that allows individuals to store and retrieve digital items, like cryptocurrency and NFTs.
Dapp is short for Decentralised App, which is a blockchain-integrated website built on a decentralised network, combining smart contracts with frontend user interfaces.
This is simply a launch or a release. When an NFT drops, it usually means it becomes available for trading in the market.
Ethereum / ETH
Ethereum is a blockchain, and ETH is the currency used to make transactions on the Ethereum blockchain.
A gas fee is an amount of Ether (ETH) required for an Ethereum blockchain network user to conduct a transaction on the network. It compensates miners for the work they do verifying transactions and securing the network.
Minting an NFT means you are publishing your token on the blockchain, making it available for purchase.
Non-Fungible Tokens (NFTs)
A digital asset that represents real-world objects like art, music, avatars, in-game items and more. They are one-of-a-kind, and each has its own unique identifying code. It is this uniqueness that give NFTs their value.
Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They are usually used to automate the execution of an agreement between a seller and a buyer, with the terms of the agreement being written directly into the code.
Staking refers to attaching your NFT to a platform or protocol staking rewards and receiving staking rewards in return. Staking NFTs allows the holder to earn income while maintaining ownership.
Your wallet address is known as your “public key.” Your wallet address is unique. It’s the address people will use when sending you cryptocurrency or NFTs, sort of like your bank account number. Your NFTs do not exist inside your wallet—they exist on the blockchain, under your wallet address.
There you have it, some of the terms you might come across in the world of Web 3 and NFT, now you know what they mean, you can explore the world with more confidence!
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