The world of web3 and NFT is full of slang and peculiar terms one can easily drown in. To help you on your journey, we have collected all the most popular web3-related words, analyzed current definitions and assembled the most simple and at the same time the most concise ones.
All words are listed alphabetically. Please comment if the glossary lacks some definitions or if current paragraphs should be edited.
A special event when, to attract new customers and support a community, a project sends NFTs or cryptocurrency to users for free.
To buy an NFT without preliminary research.
A digital object or token.
Short for Axie Infinity, one of the most popular NFT games.
To burn a token or an NFT is to destroy it.
Each NFT may be considered a collectible, since it is unique and has more or less rare features.
A popular blockchain game where users can buy, collect, and sell virtual cats. It is considered to be one of the first P2E games.
CryptoPunks represent 10 thousand unique pixel-art images. Launched in 2017, this project made NFT art viral.
A decentralized application, which is a digital app running on a blockchain to keep users’ data out of the hands of the organizations behind it. The blockchain stores copies of its expanding stack of data on a large number of participating computers, known as “nodes”, all at once. These computers are owned by users, not by the creators of the dapp.
Dapps are as varied as conventional apps: They can provide social networks, games, entertainment, productivity tools and so on. Web3 games are an example of dApps.
Short for "decentralized exchange", where users can make P2P transactions.
Short for "decentralized finance".
A person who tends to ape in NFT projects.
Verified and publicly known. For example, if you learn that "NFT creators are doxxed" you expect their names, social media and real photos to be revealed and available for anyone.
An acronym for “do your own research”. It is frequently used in crypto world (specifically by crypto bloggers on Youtube) to prevent the audience from unconditionally believing and following an author's advice.
ERC-20, ERC-721, ERC-1155
The most popular token standards. Learn more in this article.
A gaming mode when a player performs repetitive actions to gain experience, points or some form of in-game currency.
Fiat money is a "traditional" government-issued currency. Most modern national currencies, such as the U.S. dollar, euro, pound sterling, Chinese yuan, etc. – are fiat.
Purchasing a certain quantity of tokens (fungible like currency or non-fungible like NFTs) at a relatively moderate price with the hope of shortly selling it later for a higher price.
A floor price for an NFT is the lowest price among the same NFTs (belonging to a certain collection, game or listed at a certain platform).
Floor sweeping occurs when all minted NFTs are sold out for the floor price. It usually happens with long-awaited and prominent NFT projects. Floor sweep is almost always automated to execute trades faster: bots are triggered immediately on mint. After the sweep, the purchaser has an advantage and can then sell these newly acquired prices at a higher “floor price,” essentially flipping them for profit.
NFTs that can be split into smaller pieces and protected by a smart contract. Fractionalized NFTs enable people to partially own pricey NFTs.
An acronym for “fear, uncertainty, and doubt” and is commonly used to describe undesirable effects on the market (e.g. when the floor price of an NFT project drops).
GameFi is a decentralized application where players earn by implementing tasks. It is also known as P2E.
The payments needed to complete a transaction on a blockchain. For example, when you purchase an NFT you perform 1–2 transactions, the result of which is your ownership confirmation. Gas fees are paid to blockchain miners to compensate them for the computing power they have to use to verify blockchain transactions. Gas fees are typically paid in the blockchain’s native cryptocurrency (e.g. gas fees on Polygon are paid in MATIC). The price of gas is highly volatile and dependent on a multitude of factors. Learn more about gas fees in this article.
Governance tokens are the main tokens of blockchain projects. Their holders can vote and influence the future of the project.
GMI means “gonna make it” and is used to emphasize the potential success of investing in some particular NFT.
ICO, IDO, IGO
ICO means "initial coin offering". It is a crowdfunding model (like IPO) for projects at the initial stage of development. Tokens issued and sold during the ICO are usually intended to be used in the future to pay for products and services from the funded project.
IDO stands for initial DEX (decentralized exchange) offering, where new tokens are listed at a decentralized exchange for raising funds. IDO investors can trade tokens right away, as they are already listed.
IGO ("initial game offering") is the same as ICO and IDO, but with a gaming project providing early access to NFTs and gaming currency to raise funds for game development.
KYC means “know your customer”. This is how companies verify their users by asking them for personal information.
The ability of a coin to be converted into other currencies.
A crowdsourced pool of cryptocurrencies or tokens locked in a smart contract. Liquidity pool is used to facilitate trades on a decentralized exchange (DEX) as it allows to trade automatically, without waiting for buyers or sellers.
NFT metadata specifies what kind of data are represented by this NFT (whether it is a .jpeg or .mp3 or any other file format), refers to the visual or auditory asset and includes information like transactional history. NFT metadata helps to avoid hosting all files on-chain (what would be impossible).
A concept of a persistent online 3D universe that combines multiple virtual spaces. The metaverse will allow users to work, meet, game, and socialize together in these 3D spaces.
The metaverse isn’t fully in existence, but some platforms contain metaverse-like elements. Some web3 games currently provide the closest metaverse experience on offer (e.g. Decentraland).
Uniquely publish your token on the blockchain to make it purchasable.
A non-fungible (unique) token stored on a blockchain.
Non-custodial wallets show the users the private key of their wallet when they initially create it, and permanently erase this key from their own database after this. This means the user has to store this key securely, and by default, becomes the only person who can access the wallet
An NFT for which any number of editions can be minted (contrary to a limited edition).
The acronym for "Play-to-earn". Can be used to describe an activity itself or games, that are blockchain-based and enable users to earn money.
The acronym for "Peer-to-peer", which means transactions made directly between individual users without any third parties.
The act of mining or the creation of a quantity of blockchain-based tokens before a cryptocurrency is launched to the public. Premining is associated with initial coin offerings (ICOs) as a way to reward founders, developers, or early investors into the project.
Public and private keys
When you create a crypto wallet, two keys are issued. Public key can be shared with others, allowing you to send or receive funds. Private key is typically a string of letters and numbers and can be considered a password that unlocks the virtual wallet that holds your money. Private key is not to be shared with anyone! As long as you — and only you — have access to your private key, your funds are safe and can be managed anywhere in the world with an internet connection.
An NFT's rarity refers to how uncommon it is relative to other NFTs in the same collection. It can be common, uncommon, rare, legendary, or mystic.
When an NFT collections is minted with “delayed reveal”, buyers may see the purchased NFT and its properties only on the official revealing day, sometime after the mint ends. Till this time what buyers see is not the exact collectible minted but a dummy image, which is the same for everyone.
Digital contracts that define the terms of a transaction, denoting the required actions of each participant via computer code. Smart contracts are self-enforcing and self-executing; as a result, they are cheaper, faster, and more secure than traditional contracts. Since smart contracts are deployed on blockchain, all transactions are visible to the members of networks. This transparency allows to verify transactions easily and certainly, preventing the records from being altered or deleted. In relation to NFTs, smart contracts drive such activities as selling or purchasing an NFT: an NFT is transferred to a buyer the moment a certain amount of coins is transferred to a seller's wallet.
Sales among the collectors. An opposite to that is primary market, which means the sales conducted directly by the creator. Some marketplaces, which allow minting (or creating) NFTs, act both on primary and secondary market. PROM Marketplace represents secondary market with gaming NFTs which has been minted on other platforms.
The term "tokenomics" comprises "token" and "economics" and stands for a description of a token distribution mechanism. Tokenomics describes why a particular cryptocurrency is valuable and interesting to investors. That includes everything from a token's supply and how it’s issued to things like what utility it has.
Tokenomics is an important concept to consider when making an investment decision because ultimately a project that has smart and well-designed incentives to buy and hold tokens for the long haul is more likely to outlast and do better than a project that hasn't built an ecosystem around its token.
A token that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer. Utility tokens sale is a method of fundraising for the start-ups, so this concept is usually associated with initial coin offerings (ICOs).
A whitelist is a special list that enables users to have early access to some NFT drop.