All About NFT Terms

By now, the NFT phenomenon involves almost every sector, from art to publishing, passing also from automotive and fashion and consequently leads new people to interface with this sector and learn more and more about the same to understand both its functioning and be able to develop and create something independently given the apparent simplicity in creating them.

Unfortunately, very often those who are fasting in these subjects and on the subject, desperately looking for information that unfortunately results in simple articles or videos on YouTube that explain how to create an NFT but that leave out those fundamental and necessary steps to extricate themselves among the various possibilities it offers the sector, and often ignoring dedicated terminologies and what they refer to.

We remind you that before starting any NFT project it is always better to inform yourself both about the blockchain that one intends to use to understand strengths and weaknesses and also about the dedicated marketplace, and here we cannot fail to mention the book Mastering NFT - Guide practice for beginners and advanced in which 5 different blockchains and different marketplaces are illustrated.

Once we have learned the basics of blockchain and crypto, here we are in the NFT sector with other terms and transactions concerning the smart contract that we are going to create related to our collection, as behind the NFT there is always a smart contract that manages and contains part of the information of the same.

Drop

Let's start with an English term "drop" that translated we can use it as a drop or as a drop, which in our case has the value of a new release and therefore a new NFT that an artist or project has launched or will launch, as it is easier to write new drop rather than writing the entire sentence dedicated to the release of the new NFT or project, an abbreviation that is made above all for the little space that Twitter grants in its messages.

AirDrop

One of the forms of drop and marketing that are used in the crypto and blockchain sector is certainly the airdrop, i.e., that you receive the relative token, in this case, an NFT, in a completely automatic way and without performing anything particularly difficult, and usually, it is enough to comment on your address under the comments of a social media such as Twitter for example, and we could receive as a gift through this airdrop (as if it had been launched from the sky) automatically and without any fee for us.

Claim and Mint

Let's continue with the English terms and here we find 2 that are interesting and that you need to know, that is the claim or request/claim in Italian, and which indicates the manual action that must be done to come into possession of the relative NFT, in fact, in this case, there is usually a website where you can redeem an NFT for free but only for a few, and then we will redeem the NFT with our account/address.

Instead, mint is the process of creating the NFT starting from the smart contract, as there is precisely the function of the same name that will create and generate the new brand NFT either on our address or another address, depending on how the smart contract is built, and a function that is often transferred to the final consumer, as the related transaction still has a transaction fee cost that is borne by the end-user and not who created the collection, and in these cases, it is better to avoid these collections because they demonstrate how the creator did not want to invest in his project and bear the cost of creation himself.

Whitelist and Waitlist

Another marketing strategy that is used is that of the whitelist and waitlist, the first is the list that allows only the addresses selected with some methods to be able to buy or receive a specific NFT, while the other, as the name suggests, is the list waiting where we will have to wait for the collection to be unlocked and which will initially be available only for those who have participated in the whitelist.

Here we see that it is a strategy that some use to create anticipation and hype about the project, even if on a technical level it is not difficult to implement and it is enough to have the various addresses to be recognized by the smart contract to filter who is in the whitelist and who not, which can be done both manually and automatically with specific functions.

Rolling Royalties

Then we often hear about the royalties related to the project or the NFT which are a commission that retains those who create the NFT, a commission that works on the secondary market, i.e., if that NFT is sold by those who bought it, then on that sale, the creator will receive a commission; be careful because this is not always there and it could be lost, especially since if different marketplaces with different characteristics are used, then it is not certain that the same commission will be transferred, and in any case, there are also different strategies for not starting the same commission, so unless you create your smart contract with a dedicated system, you don't have to rely heavily on that commission, this is especially true for those projects that take advantage of the creation of NFT through NFT marketplaces.

Finally, here is the video for Italian readers: