NFTs run on a complex and diverse system, and it can be a challenge to understand all the acronyms and jargon exclusive to the NFT community. This dictionary gives you every definition you need to know to understand the inner workings of the NFT community and build confidence in your knowledge of NFTs.

Airdrop – Airdrop is a way to distribute NFT or coins directly into a person’s digital wallet. Airdrops are given out to holders as thank you or in exchange for social media hypes.

1/1 – A 1/1 is a one-of-a-kind NFT artwork never to be duplicated or made again.

Art Reveal – An art reveal is a moment when an NFT collection where the public can see the artwork they have minted.

Blockchain – The blockchain is a distributed digital ledger or database that securely stores data and information that is publicly accessible. The blockchain runs on blockchain-powered crypto networks that store data across distributed devices called nodes worldwide and can be anything from computers to servers. The networks do not rely on a third party as the nodes allow communication between the devices that store, spread, and preserve data and create an immutable record.

CC0 – CC0 stands for Creative Commons Zero and is a liberal form of copyright protection where creators forgo copyright protection for their work to be used, adapted, and profited off of by the public.

Cold Wallet – A cold wallet is the most secure wallet to hold cryptocurrency as the crypto is stored offline in a paper or hardware wallet.

DAO – A DAO is a decentralized autonomous organization that runs on the blockchain through smart contracts, laying out the rules and regulations. A community of primary stakeholders operates DAOs.

Decentralized Applications – Decentralized apps are built on a decentralized network such as the Ethereum Blockchain and powered by smart contracts.

Discord – Discord is a messaging platform that allows voice, text, and messaging. Discord is a primary communication platform used among the NFT community where creators can discuss their NFT projects and share updates with the public.

Ethereum – Ethereum is a blockchain network that is the most popular for NFTs and is primary in the Web3 ecosystem.

Governance Token – The governance token allows holders voting rights within a DAO to make key decisions that impact the future of a project.

Floor Price – The floor price is the lowest price listed in an NFT collection, where the floor price can dictate the price.

Gas Fee – Gas fees are the charges users pay to complete a transaction on a blockchain. These fees are created to verify blockchain transactions and are paid in the native blockchain currency.

Gas War – A gas war is when users compete over the priority of transactions on a blockchain. These are common during NFT drops. The more gas that is paid, the quicker the transaction and the more likely that your transaction will take priority.

Hot Wallet – A hot wallet is a digital wallet that stores cryptocurrency online and is directly connected to the blockchain. You can easily send, store, and receive tokens, and users can access them from any device.

Interoperability – Interoperability allows users to carry their data and virtual items across various decentralized applications and virtual worlds. This feature is a core tenant of Web3 and allows users more flexibility and control of their data and allows true ownership of their digital purchases.

Limited Edition – Limited edition NFT collections have a set number of items that collectors can purchase.

Metaverse – The metaverse is a virtual and physical reality blend where people can shop, work, play, and live in an immersive virtual world. Many NFTs have created a utility to be used in the metaverse.

Mint – Mint is the process of adding, recording, and validating an NFT on the blockchain.

On-Chain – On-chain is a digital token than exists on a blockchain and can represent transactions with a token on a blockchain.

NFT – An NFT is a non-fungible token with its own information and individual ID that exists on a blockchain network, making them non-interchangeable, and each one is unique. NFTs can exist as music files, songs, videos, gifs, avatars, etc.

NFT Marketplace – The NFT marketplace is a decentralized platform that exists on a blockchain where people can buy, sell and trade NFTs.

NFT Roadmap – The NFT roadmap maps out the strategies, goals, and milestones of an NFT project to help communicate the value and utility to potential investors.

Open Edition – An open edition NFT collection is where an unlimited number of items can be minted.

P2E – P2E stands for Play-to-earn, where players are awarded utility tokens for playing games and can use the tokens to purchase virtual goods that can be converted into fiat or cryptocurrencies.

PFP – PFP (profile picture) is an NFT or digital token that displays a person’s social media profile picture.

Royalty – A royalty is an amount a person receives for creating, owning, or licensing work. For example, an NFT creator can collect a royalty every time an NFT is sold.

Solana – Solana is a blockchain that supports NFTs that combines proof-of-history (PoH) and proof-of-stake (PoS) to reduce validation times, making Solana a cheaper option.

Smart Contracts – Smart contracts are a program that exists on the blockchain that determines the if/when/then statements where when the terms are met, a transaction automatically completes and is recorded on the blockchain. Smart contracts enable trust and transparency, and transactions cannot be disputed or changed. NFTs are created using smart contracts that assign ownership and allow access to the NFT.

Staking – Staking is the process of locking up the currency by proof-of-stake in a digital wallet or exchange to earn interest over time. The longer the crypto is staked, the more interest is earned.

Utility Token – A utility token enables access to a decentralized service or application. The tokens are an internal economy specific to the individual project.

Tezos – Tezo is an up-and-coming blockchain that supports NFTs and uses two times less energy than the Ethereum blockchain of its Liquid Proof-of-Stake (PLoS) mechanism.

Whitelist – Users who are given early access to purchase an item from an NFT collection before launch are added to a list called the whitelist.

If you are looking to get in on the latest NFT drops to try and purchase your own NFT, check out the NFT Hype Drops list of the upcoming NFT collections to keep an eye on.