NFT Glossary
NFT Glossary

NFT Terms You Should Know: Round 2

Since we first published Our Ultimate Glossary of NFT Terms, the NFT market has continued to evolve and prosper. Because of that, more terms and practices entered the NFT jargon. We believe that now is the time to publish phase 2 of our glossary, with some more current NFT terms. So without further ado, here is another list of NFT terms you should know.

ERC-721

Let’s break it down first; What is ERC? The Term ERC stands for “Ethereum Request for Comments”: Ethereum is being developed by its GitHub community, and ERC-721 references a specific discussion on GitHub proposed by developer William Entriken in early 2018. Since then, ERC-721 has been accepted as a standard on the Ethereum network: ERC-721 allows the transfer of a specific token on the Ethereum blockchain and to register a particular token to a wallet. If you can own a specific token, that token is, in fact, a non-fungible token (NFT).

Another similar example of an ERC standard is ERC-20. This standard allowed new tokens on the Ethereum blockchain and was used to create cryptocurrencies (such as Tether, Binance Coin, USD coin, Dai, and many more).

Terra Luna crisis
Crypto

HODL

In the Crypto jargon, HODL means to hold, like hold on to your investment. It originated in the Bitcoin era, when early adopters bought their bitcoins for just a few cents or dollars, held on to them, and became filthy rich. These days, HODL (in all-caps) is also used in the NFT community.

Layer 1 and Layer 2

In the blockchain world, Layer-1 is the basic blockchain architecture. For instance, Bitcoin and Ethereum blockchains are layer-1 blockchains. Layer-2, however, is a protocol that is built on top of the Layer-1s’ structure. An example of a Layer-2 protocol is Polygon: Polygon is a side chain to Ethereum that is built on Ethereum and aims to address Ethereums’ scaling problems. However, if and when Ethereum merges into Ethereum 2, it will be a Layer-1 upgrade since it changes the fundamentals of the blockchains’ architecture.

(The) Moon

“The Moon” is where all crypto and NFT projects want to go. If you think you have a project that will “go to the moon,” you believe your project will increase its value bit time.

OpenSea

OpenSea is the leading Marketplace in the NFT world; It is something like the eBay of the NFT world. It is currently valued at over 13 billion dollars by its investors (significant-tech hedge funds).

Scalability

As the blockchain grows, it is getting more and more challenging to support the number of transactions or the “Scale” of its activity. Scalability is a term used to describe the blockchains’ ability to support a certain number of transactions. The Ethereum network can confirm between 7 to 15 transactions per second. However, global credit card companies can support around 100,000 transactions per second. Ergo, they have higher scalability. 

Shill

Shilling means to fake an endorsement for a crypto or NFT project you don’t actually believe in. For instance, it was recently published that Lindsey Lohan shilled two Crypto Projects that ultimately tanked with the investors’ money in exchange for about 30,000 dollars she received. 

ZK-Rollups

ZK-Rollups or Zero-Knowledge rollups are a layer-2 solution that enables you to bundle many transactions into one transaction and authenticate them off-chain. It is, in fact, a Scaling solution, which is much needed since there is no way of knowing when phase 2 of the Ethereum 2 merge will be completed.

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