Question 1

What is Blockchain?

Accepted Answer

Blockchain is a foundational technology that is a decentralized ledger that securely records transactions across many computers. It ensures the integrity and transparency of data without a central authority.

Question 2

What are NFTs (Non-Fungible Tokens)?

Accepted Answer

NFTs are digital tokens that represent ownership of unique items or content. Unlike cryptocurrencies, each NFT has a unique value and cannot be exchanged on a one-to-one basis.

Question 3

What is Metadata in the context of NFTs?

Accepted Answer

Metadata is descriptive information attached to NFTs, including details like the name, description, creator, and ownership history. It plays a crucial role in defining the asset's uniqueness and value.

Question 4

What are Collections in the Web3 space?

Accepted Answer

Collections are curated sets of NFTs, often by a single creator or brand. Collections can represent a theme, a series of artworks, or any group of related digital assets.

Question 5

What is a Wallet in Web3?

Accepted Answer

A Wallet is a digital tool that allows users to store, manage, and transact cryptocurrencies and NFTs. Wallets are essential for interacting with the Web3 space.

Question 6

What is a Wallet Address?

Accepted Answer

A Wallet Address is a unique alphanumeric string that serves as an identifier for your digital wallet. It's used to send and receive digital assets securely.

Question 7

What is a Seed Phrase?

Accepted Answer

A Seed Phrase is a series of words generated by your cryptocurrency wallet that gives you access to the funds associated with it. Keeping your seed phrase secure is critical for the safety of your assets.

Question 8

What is Minting?

Accepted Answer

Minting is the process of creating a new NFT on the blockchain. Minting turns digital art or assets into a part of the blockchain, making them purchasable and tradable.

Question 9

What are Gas Fees?

Accepted Answer

Gas Fees are transaction fees paid to compensate for the computing energy required to process and validate transactions on the blockchain. Gas fees can vary based on network congestion.

Question 10

What are Royalties?

Accepted Answer

Royalties are a feature of many NFT platforms that allows creators to receive a percentage of sales each time their NFT is resold. This provides creators with ongoing earnings from their work.

Question 11

What are Smart Contracts?

Accepted Answer

Smart Contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce and execute the terms of agreements.

Question 12

What are Whitelists?

Accepted Answer

Whitelists are exclusive lists that grant certain users the right to participate in pre-sales or access specific features before the general public.

Question 13

What is Burn in Web3?

Accepted Answer

Burn is the act of permanently removing an NFT or a token from circulation, often to decrease supply or end its lifecycle.

Question 14

What are Explorers (e.g., Etherscan, Polygonscan)?

Accepted Answer

Explorers are websites that allow anyone to view transactions, addresses, and other blockchain data in real-time. They are invaluable tools for verifying transactions and understanding blockchain activity.

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Web3 Terminology Explained: A Detailed Guide for Beginners