Glossary

In its most simple terms, you can consider an NFT to be a piece of Digital Art that cannot be copied.

Take any normal digital “picture” such as a Jpeg and it can be made into an NFT by linking it to a Blockchain such as The Ethereum Blockchain.

The process of “linking it” includes a “digital contract” that makes the image/NFT unique. It is this process of linking the image to a Blockchain via a “Smart Contract” that makes the image an NFT.

So, at its most simple a Digital Image linked to a blockchain via a Smart Contract becomes an NFT

This can also be applied to a mp3 music clip or an mp4 video clip. These too can be linked to a Blockchain via a Smart Contract and will become an NFT.

A Smart Contract is essentially a script of computer code that forms the agreement linked to any given NFT or Collection of NFT’s. It represents the document that “follows” the NFT through any series of events such as the point of the NFT’s creation, the sale of the NFT and for example any subsequent re-sale of the said NFT. It is the legal documentation that follows the NFT on its journey through creation and future sales transactions.

It's important to note that a Smart Contract does not represent a legally binding contract as in the eyes of the law.

Minting an NFT is the process of turning a digital file into a crypto collectible or digital asset on a blockchain, for example the Ethereum Blockchain.

The digital item or file (in this case NFT) is stored in this decentralized database or distributed ledger forever.

It is never possible to edit it in any way. So, it's not possible to modify it. nor is it ever possible to even delete it.

Just as any Government has a manufacturing process for creating physical coins, the process of uploading a specific digital asset, such as an NFT, is referred to as "Minting". It is the point at which your digital asset (NFT) becomes irreversible part of the Blockchain to which it is initially created.

At the point of the "Minting" the creator can build into the Smart Contract terms which schedule the payment of royalties for every subsequent transaction, say at 10%. So, if a NFT is resold for $1000, the creator can receive a royalty of $100. This can occur as often as the NFT is resold on a secondary market.

Minting is the process of “creating” the NFT often at the moment of purchase by the buyer.

A “Drop” relates to the timely release, or Launch, of any given NFT collection. Essentially after all the hard work has gone into setting up the NFT collection it becomes available to the public via what is known in the industry as a “Drop”.

A Crypto Wallet is a physical device or digital medium that allows you to store Crypto Currency much like a traditional wallet is used to store cash except in a digital format.

Moreover, a Crypto Wallet can interact with digital platforms such as Coinbase, Binance and so on. It can also interact with, for example, a "Minting" page, or section, of an NFT Collection website/launch page.

A real example would be to transfer Ethereum from a Coinbase account on to a Metmask wallet and then use the funds held in the Metamask wallet to purchase an NFT on a Collection Launch Page.

A Crypto exchange is a platform that allows the user to purchase, trade and sell Crypto currency and other digital assets such as NFT's.

Coinbase for example is one of the world's leading Crypto Exchanges. It is even now listed on the NASDAQ.

A user, once their identity is satisfactorily verified, can for example upload FIAT Currency such as British Pounds, Euro's, US Dollars to their Coinbase account. Once "cleared" in the users account (which is generally instantly) it can then be used to purchase (trade) Cryptocurrencies such as Ethereum and Bitcoin amongst others.

From a Crypto platform, such as Coinbase, a user can for example fund a Crypto Wallet and then interact with an NFT website and make purchases through the interaction of the wallet with the NFT Minting page.

The Secondary Market is a place where NFT's can be listed to be resold either through an array of auction techniques or simply on a "buy now" basis. It is not unlike eBay or Amazon in this sense. Two examples of Secondary Markets are Opensea and The Nifty Gateway Marketplace.

Buyers of NFT’s often list their new purchases for re-sale on places like OpenSea.