NFT Glossary: Common NFT Terms Explained Simply

NFT Glossary: Common NFT Terms Explained Simply

The NFT world has a lot of its own words. If you're new, it can feel like everyone else already knows the language.

This glossary explains the terms you're most likely to come across, in plain English and in alphabetical order within each section. Bookmark it and come back whenever a word stops you in your tracks.

The basics

Blockchain – A shared public record of transactions, kept by many computers at once. Once something is written to it, it is very hard to change. NFTs live on blockchains such as Ethereum, Polygon and BNB Chain.

Chain – Short for a particular blockchain. "Which chain is it on?" means "which blockchain holds this NFT?". NFTs on one chain can't usually be moved to another without a special bridging tool.

Collection – A group of NFTs created under one smart contract, usually sharing an art style or theme. A collection might have ten items or ten thousand.

NFT (non-fungible token) – A unique digital token recorded on a blockchain. "Non-fungible" means it isn't interchangeable: one pound coin is the same as any other, but each NFT has its own token ID and history.

Token ID – The number that identifies one specific NFT within a collection. Two NFTs from the same collection will always have different token IDs.

Wallets and security

Approval – Permission you give a website or contract to move your tokens or NFTs. Marketplaces need approvals to list items, but they can also be misused, so only approve sites you trust.

Gas (or gas fee) – The small network fee paid to process a transaction on a blockchain. Fees vary by chain and by how busy the network is.

Hardware wallet – A physical device that stores your private key offline. Transactions must be confirmed on the device itself, which adds a layer of protection.

Private key – The secret that proves you control a wallet. Anyone with it can move everything in that wallet.

Seed phrase (recovery phrase) – A list of 12 or 24 words that backs up your private key. Never share it with anyone, and never type it into a website.

Wallet – An app or device that holds your keys and lets you sign transactions. Your NFTs are recorded on the blockchain against your wallet address, not stored "inside" the app.

Wallet address – Your public identifier on a blockchain, usually a long string starting with "0x" on Ethereum-style chains. It's safe to share, like an account number.

Creating and owning NFTs

Airdrop – NFTs or tokens sent to wallets for free, often as a reward or promotion. Be cautious: unexpected airdrops can be spam or bait for scam links.

Burn – Sending an NFT to an address nobody controls, or destroying it through the contract, so it is permanently removed from circulation. Burning can't be undone.

CC0 – A "no rights reserved" licence. Art released under CC0 can be copied, remixed and used by anyone, including commercially.

Metadata – The information attached to an NFT, such as its name, traits and a link to its image. Where the metadata is stored affects how permanent the NFT's details are.

Mint – Creating a new NFT on the blockchain. "Minting" usually means paying the mint price to create and receive an NFT from a collection.

Mint price – The price set by the creator to mint an NFT. It's a starting point, not a measure of what the NFT will be worth later.

PFP – Short for "profile picture". PFP collections are designed to be used as social media avatars, often with many variations of one character.

Supply – How many NFTs exist in a collection. Max supply is the most that can ever be minted.

Traits – The individual features of an NFT, such as background, clothing or accessories. Some traits appear less often than others.

Markets and prices

Floor price – The lowest price someone is currently asking for an NFT in a collection. It reflects listings, not guaranteed value, and it can change quickly.

Listing – Putting an NFT up for sale at a chosen price on a marketplace.

Liquidity – How easily something can be turned into another asset. On liquidity-backed marketplaces, the word also describes tokens held behind an NFT under the platform's rules.

Liquidity backing – Tokens committed to an NFT that a holder may be able to redeem under the platform's rules. Backing can be checked on-chain, but it doesn't guarantee a resale price.

Marketplace – A website where NFTs are bought, sold and listed.

Redemption – On some platforms, a way for a holder to burn an NFT and receive its backing, usually minus a fee, under that platform's rules.

Royalties (or creator earnings) – A share of a resale that may go to the original creator, depending on the marketplace and collection settings.

Checking things for yourself

Block explorer – A website that lets you look up any wallet, transaction or contract on a blockchain. Etherscan and Polygonscan are common examples.

On-chain – Recorded on the blockchain itself, rather than on a website or in a spreadsheet. On-chain information can be checked by anyone.

Rug pull – When creators abandon a project and take the funds, leaving holders with little or nothing. Checking the contract and any public records can help you spot warning signs.

Smart contract – A program stored on a blockchain that runs automatically. NFT collections, marketplaces and backing arrangements all rely on smart contracts.

Verified contract – A contract whose source code has been published and matched on a block explorer, so anyone can read what it does.

Check it yourself

Knowing the words is the first step. The next is using them to check things directly instead of relying on what anyone says. If you're looking at an ANON NFT, our step-by-step guide shows how to look up its backing on the blockchain: check the backing on-chain.

This glossary is general information for beginners. It is not financial advice. NFTs and crypto assets carry risk, so always check the details for yourself.