Cryptocurrency and NFT Glossary – Ecran Total

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

⚠️ We would like to inform you that investing in cryptocurrencies or in NFTs involves huge risks as they occur in an unregulated virtual universe. It is necessary to have a very strong belief in the project financed by an asset to invest in it, and to be aware that it is possible to lose everything very quickly or to finance dubious projects … This article is not investment advice.

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

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

blockchain : Technology for storing data in blocks, known to be very secure and transparent, because it is sufficient to know the “hash” of a transaction to find its terms.

BSC: Binance Smart Chain (one of the main chains)> www.binance.com

Burn : Token Destruction. The main effect of combustion is to reduce the number of tokens in circulation and therefore preserve its value by cultivating its rarity. The combustion can be registered in smart contract and practice automatically with each transaction.

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

DAO (decentralized autonomous organization) : A Decentralized autonomous organization (DAO or in French “Decentralized Autonomous Organization”) is an organization that operates through a set of smart contracts that establish and deliver rules of governance to an organization. These rules are transparent and unchangeable 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 independent organization because the planned operation, once deployed on a public channel, can no longer be stopped or changed in any way other than what it would have been planned to do (admission of new members, change of certain decision-making parameters, etc.)> read more here 📚

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

drop : This is the exact time when the NFTs for a collection will become available.

Challenge : To ” Decentralized economy »Decentralized economy on blockchain.

ANIMALS : Do your own research – the world of NFTs and cryptocurrencies can be a little wild and full of traps and even scams. It is therefore advisable at all times to investigate the reasons behind the creation of a currency or the issuance of NFTs. It is generally necessary to look at the project behind these assets to ensure the viability of tokens / NFTs. For this, issuers produce a document called the “White Paper”> 🪙 Read 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 base price is set individually). In particular, ERC 1155 allows the issuance of assets in packages (known as lotteries).

Vend : Resell an asset at a profit.

Floor price : Floor price. 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 for NFT issuers to set a price floor. The floor price is generally the lowest price accepted for an item in a collection.

FOMO (Fear Of Missing Out) : Acronym that expresses the fear of missing an opportunity in the market.

fungibility : An asset’s propensity to change value during an exchange. The more fungible an asset, the more fixed 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 smaller.

Gas : it is the currency used to remunerate the players in the blockchain that records the transactions. The chains (Bitcoin, Bsc, Ethereum, Tezos, etc.) have different gas prices (gas fee). A transaction does not always use the same amount of gas, it depends on the number of transactions that take place at the same time. The chain will automatically increase its consumption and will prioritize transactions whose gas charges are the most interesting.

Gaswar : It’s the war or the battle for gas. When several transactions are registered at the same time in the blockchain, 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 or HicEtNunc : This is a marketplace for NFTs from the Tezos chain> 👨‍🎨 Consult here

HODL : Two Holds, ie keep an asset for as long as possible – getting rid of it would have an impact on the overall price of the asset. HODL is a typing error that gets stuck.

Marketplace : NFT marketplace and stock exchange.

Metamask : Encrypted digital wallet that works with various blockchains. Metamask or one of its equivalents is essential for retaining its assets (cryptocurrencies and NFT). This is the connection between this purse and marketplaces which makes it possible to set up each person’s galleries, but also to carry out exchanges. The metamask in particular in WEB3 no longer allows to create a user account or login, it has in itself become a means of anonymous and secure authentication.

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

mint : Consists of registering the token or NFT as well as its identification data in a blockchain. This action therefore makes it unmodifiable and allows its exchange between owners.

NFT (Non-Fungible Token) : It is an encrypted asset that can have a detailed graphical representation (art type) or a simple QR code. Once it is registered on a blockchain, it is numbered and therefore unique.

Opensea: The largest NFT marketplace> 🏪 take a look

Pool : Virtually securely store and stack its assets (for stacking). Pools allow other users to have constant liquidity so that lenders are paid.

Project : Definitely the most important definition of this non-exhaustive glossary. The project, as the name suggests, is the mission and promise issued by the initiator of an asset. In return for the issued assets, Internet users fund the project. The quality of the project, the rewards from the project manager (Airdrop) and the lack of issued tokens make it a reliable investment or not.
DIn the same way that an investor would buy Netflix shares because he believes that the project that the company is carrying will cause his stock to increase in value, the crypto-investor believes that his asset will increase in value. The analysis of the White Paper and Tokenomics (a token’s financial obligations) is crucial.

For example, the project behind BAYC (Bored Ape Yacht Club): There is a promise to belong to a very closed group, to a particular community. And for this, the broadcasters of these NFTS organize exclusive events in Los Angeles, New York, etc.… ” Recently, a weekend of owner parties took place in New York with a real yacht party and concert featuring Chris Rock, Aziz Ansari and The Strokes. » (Press free)

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

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

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

Polet : Digital asset that can be exchanged on a blockchain and makes it possible to raise money in the universe of cryptocurrencies. It provides access to the right of use and not to shares in the capital. An NFT is a specific token because it is non-fungible.

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

Whale 🐳: This term refers to very large asset holders. When they sell (close their position), prices are likely to fall.

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