Cryptocurrency and NFT Glossary – Ecran Total

Full screen has brought together common words and expressions so that you can understand the problems behind these new technologies and changes in consumption at the next dinner with family or friends.

⚠️ We inform you that investments in cryptocurrencies or NFTs involve enormous risks, as they take place in an unregulated virtual universe. It is necessary to have a very strong belief in an asset funded project to be able to invest in it, and to be aware that it is possible to lose everything very quickly or fund dubious projects … This article is not investment advice.

Airdrop : “Fallen from the sky”, an Airdrop is a generally free distribution of NFTs or cryptocurrencies. Airdrops are reserved for communities (for example those who already own a token or an NFT from a collection)

Good : Token, NFT, etc., whose value can represent a real asset.

blockchain : Technology for storing data in blocks, considered very safe and transparent because it is enough to know the “Hash” of a transaction to find the terms.

BSC: Binance Smart Chain (a major chain)> www.binance.com

Burn : Destruction of the token. The main effect of the burn is to reduce the number of tokens in circulation and therefore to maintain their value by cultivating their rarity. The burn can be recorded in the smart contract and exercise automatically with each transaction.

Collectibles: Collectibles> 🙊 Look at the “Bored Ape Yacht Club” collection.

DAO (Decentralized Autonomous Organization) : One Decentralized Autonomous Organization (DAO or in French “Decentralized Autonomous Organization”) is an organization that operates through a series of smart contracts that establish and provide governance rules to an organization. These rules are transparent and immutable because they are part of a blockchain network, a technology for storing and transmitting information that is transparent, secure and operates without a central control body.
We are talking about an autonomous organization because once deployed on a public channel, the planned operation can no longer be interrupted or modified differently from what would have been expected to do so (admission of new members, modification of some decision-making parameters, etc.) > read more here 📚

Discord : 👾 Free proprietary VoIP and instant messaging software. Communities following artists usually meet in Discord groups.

drop : This is the precise moment when a collection’s NFTs become accessible.

Challenge : For ” Decentralized Finance »Decentralized finance on the blockchain.

DYOR : Do Your Research: The world of NFTs and cryptocurrencies can be a little wild and full of traps and even scams. It is therefore advisable to research the reasons behind the creation of a currency or the issuance of NFTs at all times. Typically it is necessary to review the design behind these resources to ensure the viability of the tokens / NFTs. For this, the issuers produce a document called “white paper”> 🪙 Read the bitcoin whitepaper

ERC-20 / ERC-721 / ERC-1155 : These are technical standards. ERC 20 allows the issuance of tokens whose value is volatile. ERC 721 (type that appeared on the Ethereum blockchain in 2017) is reserved for non-fungible assets (whose minimum price is set individually). ERC 1155 specifically allows the issuance of packaged assets (known as lotteries).

Flip : You resell an asset at a profit.

Price per floor : Price per floor. Unlike cryptocurrency, NFTs do not have a volatile value set by trading, it is the OTC exchange to the highest bidder that sets the price, so it is imperative that NFT issuers set a minimum price. The minimum price is generally the lowest accepted price for an item in a collection.

FOMO (Fear of getting lost) : Acronym that expresses the fear of losing an opportunity in the market.

fungibility : Propensity of an asset to change in value during an exchange. The more fungible an asset, the more fixed its value. A euro banknote or coin is very fungible, when it changes hands its value is not affected. On the other hand, works of art are less so.

Gas : it is the currency used to remunerate the actors of the blockchain that records the transactions. The chains (Bitcoin, Bsc, Ethereum, Tezos, etc.) have different gas prices (gas tariff). A transaction does not always consume the same amount of gas, it depends on the number of transactions occurring at the same time. The supply chain will automatically increase its consumption and will give priority to the transactions whose gas fees are more attractive.

Gaswar : It is the War or the Battle of Gas, when multiple transactions are registered in the blockchain at the same time, the price of gas increases exponentially.

hash : Unique transaction reference code. To transparently find an exchange on the chain, it is enough to know its Hash.

HEN o HicEt Nunc : This is a market for NFTs from the Tezos> chain 👨‍🎨 See here

HODL : To hold, i.e. to keep an asset for as long as possible – separating from it would have an impact on the overall price of the asset. HODL is a typo that got stuck.

Market : market and NFT exchange.

Metamask : Encrypted digital wallet that works with different blockchains. Metamask or one of its equivalents is essential for maintaining its assets (crypto and NFT). This is the connection between this wallet and the markets that allow you to set up your personal galleries, but also to make exchanges. The metamask allows in particular in WEB3 not to create a user account or a login anymore, it has become in itself an anonymous and secure means of authentication.

Metaverse : 3D virtual universe, where you can use and view your NFTs. The best known are The SandBox and Decentraland> Play on TheSandBox 🕹

mint : It consists in the registration of the token or NFT and its identification data in a blockchain. This action therefore makes it non-modifiable and allows it to be exchanged between owners.

NFT (non-fungible token) : It is an encrypted asset, which can have an elaborate graphic representation (artistic type) or a simple QR code. Once registered on the blockchain, it is numbered and therefore unique.

Offshore: The largest NFT market> 🏪 have a look

Pool : Virtual safe for storing and stacking your assets (for stacking). Pools allow other users to have constant liquidity, so lenders are remunerated.

Project : Certainly the most important definition of this non-exhaustive glossary. The project, as the name suggests, is the mission and the promise issued by the initiator of a good. In exchange for the issued goods, Internet users finance the project. The quality of the project, the awards of the project leader (Airdrop) and the scarcity of issued tokens make it a reliable investment or not.
D.In the same way that an investor would buy Netflix stock because he believes the company’s project will make his stake appreciate in value, the crypto investor believes his asset will increase in value. The analysis of the White paper and Tokenomics (the economic commitments of a token) is fundamental.

For example the project behind the BAYC (Bored Ape Yacht Club): There is the promise of belonging to a very closed group, to a particular community. And for this, the transmitters of these NFTS organize exclusive events in Los Angeles, New York, etc … ” More recently, a weekend of celebration for owners took place in New York, with a real yacht party and a concert with Chris Rock, Aziz Ansari and The Strokes. “ (The Free Press)

The owners of these NFTs are part of a very closed club, where it is possible to meet Christian Bale, Jimmy Fallon, Shaquille O’Neal or Omar Sy.

Pump and drain: Pump and dump is a market manipulation technique that involves artificially raising the price of an asset to resell it. On the stock market and traditional markets this technique is prohibited and severely reprimanded, but the cryptocurrency market does not regulate this practice.

Smart contracts: Computer protocols that perform an activity when the conditions of a contract are met. For example, depositing cryptocurrency into a wallet at a certain price could automatically perform the delivery of an NFT> more information 🧾

Token : Digital asset that can be traded on blockchain and that allows you to raise funds in the universe of cryptocurrencies. It gives access to a right of use and not to shares of the capital. An NFT is a specific token because it is not fungible.

Wallet : Digital and encrypted wallet. Metamask.io is the best known. 💸 create my wallet

Whale 🐳: This term refers to very large holders of assets. When they are selling (closing their position), prices are likely to plummet.

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