What are the key terms to know in NFTs and Web3?

Here are some of the words that we hear around the FabriikX office daily.

Non-Fungible Tokens (NFTs) 

Non-Fungible Tokens (NFTs) are unique, digital items with blockchain-managed ownership. Examples of NFTs include digital art, collectibles, virtual reality items, crypto domain names, ownership records for physical assets, and more.

Blockchain

A blockchain is a digitally distributed ledger that facilitates the process of recording transactions and information across a network. You can think of it as a decentralized or distributed database. MoneyButton supports the following blockchain: BSV. 

Fees 

Think of fees as blockchain transaction costs. MoneyButton has no say in setting fees – they are determined by supply/demand across the network (blockchain).

SATS or Satoshis

The satoshi(sat) is currently the smallest unit of the bitcoin currency recorded on the blockchain.  It is a one hundred millionth of a single bitcoin (0.00000001).

All amounts in the blockchain are denominated in satoshi before being converted for display.  Typically fees are displayed in Sats per KB (kilobyte) to make it easier to understand compared to displaying a number like 0.00000321 you just see 321.

Crypto wallet

A crypto wallet is an application or hardware device that allows individuals to store and retrieve digital items, like cryptocurrency and NFTs.  FabriikX currently offering MoneyButton as an integrated wallet.

Wallet address

Also known as your "public key." Your wallet address is unique. It’s the address people will use when sending you cryptocurrency or NFTs. Your NFTs and cryptocurrency do not live in your wallet—they exist on the blockchain, under your wallet address. Your software or hardware wallet only contains the key to that address.

Private key

A string of numbers (often 256 characters long) that represents your signature to authorize transactions on the blockchain.

Seed phrase

Your seed phrase is a list of words (usually ranges from 12-24 words) that can be used to recover your crypto should you forget your password or lose access to your wallet. When you first begin trading with your wallet, find your seed phrase and back it up somewhere safe, in multiple locations if possible. You’ll receive a seed phrase to write down when you first create a crypto wallet. This is how you can back up your key without actually holding the numbers. Also known as a "mnemonic phrase" or “secret recovery phrase.” Don’t store your seed phrase on an online cloud storage service and never share it with anyone. 

Collection

A collection is a body of work, like a store or gallery. If you see someone refer to an FabriikX collection as a store or gallery, don’t get confused – it’s all the same. We use the term collection to keep things simple.

dApp (decentralized app)

A blockchain-integrated website that requires you to connect and approve all transactions with your wallet signature. Examples include FabriikX, MoneyButton and Splinterlands.