Airdrop

‍An airdrop is when a creator, brand, or organization sends free cryptocurrency, tokens, or NFTs to designated wallets. It is usually a part of a marketing campaign to raise awareness for the brand or creator or to celebrate a specific milestone.  

Allowlist

‍An allowlist is a list of wallet addresses that are given a first chance to mint an NFT before the collection is opened to a general audience. One way to get on an allowlist is to become an active member of that particular NFT’s community. 

Arbitrum

‍Arbritrum is an L2 (Layer 2), EVM-compatible blockchain meant to help Ethereum scale. The blockchain is often used for NFTs, dApps (decentralized applications), and other smart contract-based digital items. 

Avalanche

‍Ava Labs launched Avalanche in 2020 as an EVM-compatible, open-source blockchain. Its native token is AVAX and it uses the Avalanche Consensus Protocol as its consensus mechanism. The blockchain has smart contract functionality and is a go-to blockchain for dApps. 

Base

‍Coinbase launched Base blockchain in 2023 to integrate Coinbase’s suite of products. It is an Ethereum-based L2 (layer 2) blockchain and was built using the OP Stack. 

Bitcoin

‍Bitcoin or BTC is the first cryptocurrency with the largest market cap of any cryptocurrency today. Since its introduction in 2009, it has grown in popularity and can now be used to buy goods in some retail stores, car dealerships, or via PayPal.

Bitcoin ordinals

‍Introduced in 2023, Bitcoin ordinals are essentially Bitcoin NFTs. Following the NFT definition, they are decentralized, immutable, and stored directly onto the Bitcoin blockchain. Rodamar Bitcoin Ordinal was the first ever Bitcoin Ordinal. 

Blockchain

‍A blockchain is a digitally distributed ledger that records transactions and information across a decentralized network. It is validated by various different nodes (computers) which helps ensure its decentralized, immutable, and public nature. OpenSea is compatible with Ethereum, Polygon, Klaytn, Arbitrum, Optimism, Avalanche, the Zora Network, and Base blockchains. 

Blockchain Trilemma

‍The Blockchain Trilemma refers to the three main challenges all blockchains face — scalability, security and, decentralization. Optimizing for any of these features can hinder the blockchain’s ability to deliver on one or both of the others. Layer 2 blockchains try to solve for the Blockchain Trilemma by building upon Layer 1 blockchains. 

BNB Chain

‍In 2022, Binance built BNB (Build N Build) blockchain to include two blockchains — BNB Beacon Chain (BC) and BNB Smart Chain (BSC). The blockchain was built with high performance, low latency, and cost-effectiveness in mind, particularly for building dApps and smart contracts. It is EVM-compatible and uses BNB as its native token. 

Blockchain bridge

‍A blockchain bridge is a program that connects two or more different blockchains, making it possible to transfer NFTs or other digital items across blockchains. 

Collection

‍A collection often is used in reference to an NFT collection. An NFT collection is a group of NFTs related to the same smart contract.

Consensus mechanism

‍Consensus mechanism is the designated process that a blockchain uses to validate its blocks of data. There are different kinds of consensus mechanisms, including Proof of Work, Proof of Stake, and Proof of History. 

Cryptocurrency

‍Cryptocurrency is the digital “currency” that exists on the blockchain; different blockchains typically have different native cryptocurrencies.  For instance, the Avalanche blockchain’s native cryptocurrency is AVAX, and Ethereum’s native cryptocurrency is ETH. 

Crypto wallet

‍A crypto wallet provides access your cryptocurrency and in many cases your NFTs. You can use your crypto wallet to buy, sell, or store your digital items. 

DAO

‍A DAO is a Decentralized Autonomous Organization, an entity that does not have a central governing authority but ties a group of individuals together under a shared interest or purpose. While sometimes DAOs have representatives, they make decisions by voting, using a bottom-up rather than a top-down approach to decision-making. In conjunction with their use of smart contracts, this method allows them to be decentralized, transparent, and (ideally) more fair and equitable.

dApp

‍A dApp is a decentralized application or blockchain-integrated website that enables users to connect and approve blockchain transactions with their crypto wallet. OpenSea, Uniswap, and ENS are all examples of decentralized applications. 

DeFi

‍DeFi is shorthand for decentralized finance, which describes all financial services that operate on blockchain technology. Common services include earning interest, borrowing, lending, and trading. DeFi  aims to enable trustless, permissionless, and fast transactions.

EIP

‍EIP is an acronym for Ethereum Improvement Proposals. EIPs are used to specify and propose potential new features or processes for the Ethereum blockchain, like a token standard. They are published papers that are introduced to the wider Ethereum community for review and approval. 

ENS

‍The ENS is the Ethereum Name Service, a domain naming system based on the Ethereum blockchain. When you send an NFT or cryptocurrency to an ENS, you’re sending it to a designated wallet address associated with the ENS. 

ERC-20

‍Fabian Vogelsteller introduced ERC-20 in 2015 and it was approved by the Ethereum community in 2017. ERC-20 set the standard for fungible tokens. 

ERC- 721

‍Dapper Labs introduced ERC-721 in 2017 and it proposed the standard for non-fungible tokens or NFTs. Cryptokitties was the first major NFT collection to use ERC-721 as its standard.

ERC-1155

‍The Enjin Team proposed ERC-1155 in 2018 and it introduced the ability to have multiple tokens of the same type, on the same smart contract. 

ERC-6551

‍In 2023, a group that included Future Primitive founding developers Jayden Windle and Benny Giang, among others, proposed ERC-6551. ERC-6551 enables NFTs to operate as their own smart contract account. 

ETH

ETH is the cryptocurrency used for transactions on the Ethereum blockchain. It is the second-largest cryptocurrency by market cap. 

Ethereum

‍In 2015, Vitalik Buterin and Joe Lubin introduced the Ethereum blockchain. It is a decentralized, open-source blockchain with smart contract functionality. It has the largest volume of NFTs. 

Ethereum Virtual Machine

‍Often shortened to EVM, the Ethereum Virtual Machine is software that manages the state of the Ethereum blockchain and can read smart contract code. “EVM-compatible” means that a blockchain that can run or emulate the EVM, even if it was not originally created on the Ethereum blockchain. 

Etherscan

‍Etherscan is a block explorer for the Ethereum blockchain. It allows users to view and explore actions on the Ethereum blockchain and check things like gas fees and smart contracts.

Fiat

‍Fiat is a type of currency that is not backed by a specific commodity. Instead, a government issues its value. The US dollar is an example of fiat currency. 

Fungible

‍An item is fungible when it is interchangeable with another of the same item. For instance, a $1 dollar bill can be swapped with any other $1 bill, and you would still have $1. 

Gas fees

‍Gas fees are the payment needed to execute transactions on the blockchain. They vary by blockchain, time of day, and volume of transactions occurring at any given time. These payments compensate the validators or miners who keep the blockchain functioning. 

Gwei

‍A gwei is a very small amount of ETH, the equivalent of 1 billionth of 1 ETH. 

Hardware wallet

‍A hardware wallet, sometimes referred to as a cold wallet, is a physical crypto wallet that you plug into your computer to use. It is a great option for long-term storage, but since it is not always easily accessible it can be less convenient for fast or frequent transactions. 

Klaytn

‍Kakao launched Klatyn, an open-source, public blockchain in South Korea, in 2019 and internationally in 2021. The layer 1 blockchain is focused on the metaverse, gaming, and the creator economy. Klaytn’s native token is KLAY. 

L1 Blockchain

‍Layer 1 blockchains are often referred to as L1 blockchains. They are base-level blockchains that execute and validate their transactions on their own. Ethereum is an example of an L1 blockchain. 

L2 Blockchain

‍Layer 2 blockchains are often referred to as L2 blockchains. If a blockchain processes transactions on its chain, but stores the summary of the completed actions on an L1 blockchain, it is an L2 blockchain. Arbitrum is an example of an L2 blockchain. 

Metaverse

‍The metaverse is a term used to describe a collective virtual shared space that is created by the convergence of physical and virtual reality. There is no single, all-encompassing metaverse, instead, there are multiple different virtual environments. For instance, online games, social platforms, and more. 

Minting

‍Minting refers to the process of writing a digital item (NFT typically) onto the blockchain. This establishes its immutable record of authenticity and ownership. 

NFT

‍An NFT (non-fungible token) is a unique digital item stored on a blockchain. There are different kinds of NFTs — from art to fashion — and they can represent almost anything. They serve as a digital record of ownership. 

NFT domain names

‍A domain name NFT stores a domain name on the blockchain instead of on the traditional Domain Name System or DNS. It can also be used as an alias for a wallet address. 

NFT drop

When a new NFT collection is released it’s referred to as a “drop.” When NFTs are dropped, they become available for individuals to claim, purchase, or acquire in some way.

OP Stack

‍The Optimism Collective runs the OP stack (or Optimism Stack), which is software used to create L2 blockchains. It is a standardized, shared, and open-source software. 

Open editions

The term open edition refers to a way NFTs can be sold. An open edition sale allows for an unlimited number of NFTs to be minted within a given collection. 

Optimism

‍The Optimism Foundation introduced Optimism, an L2 blockchain that is EVM-equivalent. Optimism does have a designated token, OP (The Optimism Token), but it is not required to use Optimism or pay gas fees. 

PFP

‍A PFP is a profile picture NFT. These are digital items represented by a unique image or piece of artwork that can double as a profile picture or avatar. It can also serve as membership to a community. 

Phygital

‍A phygital NFT is an NFT that has both a digital and physical component to its utility. 

POAP

‍Proof of attendance protocol (POAP) is the infrastructure that facilitates the creation of POAP NFTs. POAP NFTs are non-fungible tokens typically created to commemorate a milestone or verify attendance at a special event.

Polygon

‍Created in 2017 and initially named MATIC, the blockchain was renamed Polygon in 2021. It is an EVM-compatible Ethereum sidechain, which means it is its own blockchain, but benefits from and is compatible with Ethereum as well. Its native token is MATIC. 

PoS

‍PoS is short for Proof of Stake. It is a consensus method used by blockchains like Ethereum and verifies blockchain transactions using validators. When a new transaction is potentially going to be added to the blockchain, a validator is randomly selected to be a block proposer. This validator will then create a new block and send it to the other nodes on the network. For each new slot, a committee of validators is chosen and it is their votes that determine the block's validity. 

PoW

‍PoW is short for Proof of Work, a consensus method where transactions are verified using miners. When a new group of transactions is potentially going to be added to the blockchain, a bunch of miners (rather, their computers) will race to solve a complex math equation. After someone solves it, several other miners will verify that their answer is correct. If everyone agrees that the fastest miner’s output is correct, the block will be recorded to the blockchain, and the miner will be awarded a fee for the energy used to complete the computation. Bitcoin uses this consensus mechanism. 

Private key

‍A private key is a string of numbers or characters (varying in length and format depending on the blockchain) that represents your control over a wallet address and ability to sign to authorize transactions for that wallet address on the blockchain.

Redeemable NFTs

‍A redeemable non-fungible token (NFT) is a type of NFT that enables the holder to claim a separate physical or digital item(s). There are two types of redeemable NFTs: One that can be exchanged for an entirely new digital or physical item (the holder does not keep the original NFT) and another that allows holders to keep their original NFT and still redeem it for another item(s). In this example, the metadata may be updated to reflect redemption status and quantity remaining, if applicable.

Seed phrase

‍A seed phrase is a set of words in a specific order that is randomly generated and used to back up and recover a crypto wallet. It’s typically made up of 12, 18, or 24 words. It’s sometimes referred to as a recovery phrase, mnemonic phrase, or seed mnemonic. 

Smart Contract

‍Smart contracts are automated computer programs that enforce their coded rules. Using “if this, then that” logic, smart contracts power NFTs and dApps. Buying and selling NFTs using OpenSea is powered by the smart contract protocol, Seaport.

Software wallet

‍A software wallet is a program that lives on your computer or internet browser that you can use to buy, sell, or transfer NFTs or cryptocurrency. It’s sometimes referred to as a hot wallet. 

Solana

‍Solana is an L1 blockchain that was created as a scalable solution to run decentralized apps and facilitate the use of smart contracts. Its native cryptocurrency is SOL. 

Solidity

‍Solidity is a programming language used to develop smart contracts on the Ethereum blockchain. 

Token standards

‍Token standards are the rules that determine how a token works on the blockchain. The most referenced token standards are ERC-20, ERC-721, and ERC-1155. 

TPS

‍TPS stands for transactions per second and is the measure of how quickly a blockchain processes transactions. 

Virtual land

‍Virtual land NFTs refer to virtual space that users can own, develop, or interact with in the metaverse. It’s typically represented as 3D parcels or spaces within a virtual world, and ownership can be recorded via NFTs. 

Wallet address

‍Your wallet address refers to your public, unique wallet address on the blockchain that you will use to receive cryptocurrency or NFTs. 

WETH

‍WETH (Wrapped Ether) is a type of token that represents ETH in wrapped form. WETH’s value is always equivalent to ETH and can be redeemed for ETH. WETH transforms ETH into something of equivalent value but with more flexibility.

Zora Network

‍Zora launched Zora Network in 2023. It is an EVM-compatible, Layer 2 blockchain secured by Ethereum and powered by the OP Stack. It is an NFT-focused blockchain.