Vocabulary guide. From coinage to agriculture!

The current fashion is represented without much doubt Non-Fungible Codeknown as NFT.

If they are now somewhat known, such as audio files, videos, images, 3D models, etc. whose ownership has been registered in a large digital archive which is blockchain Trying to understand how NFTs really work and why some of them are worth so much is somewhat difficult for those with little knowledge of crypto assets.

Above all, when you look at the net to try to understand it is NFT And how to make one from scratch, you are overwhelmed with a quantity of English terms Which should explain how it works, but actually causes more confusion rather than clarifying concepts.

So we will try to provide valid evidence here, rather than vocabulary, that can help the public understand the new frontiers of blockchain technology: NFT.

NFT (Non-Fungible Token): Why is it called that?

Let’s start with the name first. “NFT” Means “non-fungible code”, which can be presented in Italian “Non-replaceable token”any currency, so to speak, “unusable.”

Where instead like cryptocurrency Bitcoin and Ethereum classified as “Tokens”or a “token”.

Cryptocurrency like BTC is a fungable code Because it is a currency that can be used for this purpose, that is, as digital money, to buy, sell and exchange other money, since 1 bitcoin always equals 1 bitcoin.

From this point of view NFT and Cryptocurrency They are “tokens” in the sense that they are two structurally similar applications that both run on the blockchain, but have nothing in common in their use.

a NFT It is a digital resource that can be any audio or video file, image, 3D model, etc., but once turned into a non-fungible code with the privacy that its property is registered blockchain And every time it changes its owners, that is, it is sold or transferred to something else Pocket wallet, The transaction is recorded on the blockchain and the new ownership is updated, as well as how cryptocurrency transactions are recorded.

NFT minting: what does it mean and what is the difference with “mining” cryptocurrency

Another term that those who tried to deal with NFT definitely met and “sk”.

Minting is the process by which an NFT is created. in Italian “to the mint” this means “Currency”, In this case “Generate an immutable token”.

This process has absolutely nothing to do with the term “mining”, By which we mean the process of “creating” new tokens for some specific cryptocurrency such as Bitcoin.

proces “SC” from NFT It is implemented in a few clicks, since it is the process of resource allocation, in which the free interfaces provided by the exchange platforms are used.

Creating an NFT simply means signing up for a website and verifying your identity (know your customer), Attach the file you want to convert into a Non Fungible icon, set two parameters and that’s it.

There are many guides on the net that explain how to do this step by step Create an NFT from scratch.

What is NFT staking

The “storage” It is a concept that is more common in relation to cryptocurrencies, but is becoming more and more popular in relation to NFT.

It is basically a method that allows holders of a crypto asset to create one passive income Coming from possession of the same.

Mainly using certain platforms dedicated to “Blocks” in NFT, That is, you bind it without being able to sell or modify it in any way for a certain period of time, and in return you receive rewards, which for example can be cryptocurrencies. You practically get an annual rate of return called “APY” Which varies based on the time the non-fungible token is stored and also on its market value.

Yield cultivation in relation to NFTs

Another common term in the crypto-asset world is lo Yield Agriculture. Yield farm is very similar to staking and in terms of cryptocurrency, the differences are subtle, including for farming, it is generally required to block two assets on the same platform, even if the rewards, that is, the percentage APY, bigger mask.

To understand what the cultivation process consists of in relation to NFTs, the simplest way is to briefly explain the operation of one of the platforms that provide this service.

pineapple cultivation It is already a platform where by stake you get a cryptocurrency called MEME “pineapple”, i.e. digital pineapple, you have collected enough number of them that they can be exchanged for exclusive NFTs. Simply with this NFT Farming platform, you can get cryptocurrency and earn NFT.

CloudTV encryption On his YouTube channel, he gives us an explanation of how to invest in NFT with Yield Farming:

What is LAND NFT

the term ground Refers to a specific type of NFT, Which plots of land in metaverse.

It’s the NFT with which you buy a part of the land, a lot, and property, in short, you have a space in a virtual reality that runs on the blockchain, like a famous example could be sand.

PFP (Profile Pictures): What this acronym stands for in the world of NFTs

The Profile pictures or photos for proofknown by the acronym PFP, is a subcategory of NFT They are a collectible art asset.

Famous examples are Bored Monkey Yacht Club (BAYC) or Crypto Catsthat is, NFT, each reproduces an image of the same character, in this case anthropomorphic cartoon animals, but each is depicted in poses, with different clothes and accessories.

‘Passive Income’ and ‘Trading’ with NFTs

There are two other terms that you will hear a lot about NFT I “trade” And Passive income.

the first, “trade”, It consists of actively earning using NFTs, that is, by buying and reselling assets on exchange platforms.

But making money with NFTs is also possible with one passive income resulting from ownership of the resource itself. For example, with mask Or another example is NFTs from LAND dei metaverse, Because it can often be rented to other users, so as to create passive income.

What “gas fees” are paid for NFT minting and transfer

The NFT . mink On many exchange platforms it is now possible almost without cost i.e. without commissions applied by the exchange, however you can incur other types of commission for payment which depend on the blockchain being used which are Gas fee.

Blockchains such as Ethereum or Bitcoin, which use a transaction verification protocol called proof of work, It is based on an unsustainable and energy intensive process. The energy demand and environmental impact are offset by the platform with extra costs On every transaction that runs on the blockchain, a fee is specifically gas.

To give a working example, every time you convert, buy, sell or create through NFT . coinage operating on Ethereum, even if the exchange platform does not charge additional costs, there are always gas fees to be paid.

Reason for running SDNFT open sea It has different costs if it is made with Ethereum or Polygon.

In the case of Ethereum, however, the issue should be resolved soon, as the platform aims to switch completely to Proof of stake.

Collaborator in editing, born in 1984.
I have a degree in classical philology and a doctorate in ancient history fromUniversity of Naples Federico II, with a treatise on the fragmentary work of Asclepid de Tragello. I am an author Scientific Publications About the Classical World and co-editor of two international academic volumes. Since 2015, I moved to England where I worked as a freelance copywriter and casino dealer.
My motto is? “Naples is a flower of paradise. The last adventure of my life.”

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