What are the key terms to understand about NFT and Web3?

Below is a list of key terms used in the NFT field. Understanding these terms may be helpful before you start using Ubox.

Non-Fungible Token (NFT)

Non-Fungible Token (NFT) is unique digital item with blockchain-managed ownership. Examples of NFTs include digital art, collectibles, virtual reality projects, crypto domain names, and records of ownership for physical assets.

Blockchain

A blockchain is a digital distributed ledger that is useful for recording transactions and information on the internet. You can think of it as a decentralized or distributed database.

Ethereum / ETH

Ethereum is a blockchain, while ETH is the token used for transactions on the Ethereum blockchain.

Ethereum Virtual Machine / EVM

If a blockchain is compatible with the EVM, it means that it is technically compatible with Ethereum and can transact tokens with it. An example of an EVM-compatible blockchain is Polygon. Just because a blockchain is EVM-compatible does not mean you can directly send tokens from one blockchain to another. Tokens must be bridged to the other blockchain. For instructions on how to switch blockchains or networks, please refer to this guide. Convenience tip - you can use the same wallet (e.g., MetaMask) on the new network. This means you can use the same wallet address on different networks.

Gas Fees

Gas fees can be seen as the cost of transactions on the Ethereum blockchain. Ubox has no say in determining gas fees; these costs are determined by supply and demand within the network (blockchain).

Gwei

Gwei is a tiny fraction of ETH, equivalent to one billionth of 1 ETH. It helps measure gas fees or transaction costs on the Ethereum blockchain, and the ratio of Gwei to the dollar is usually higher than its ratio to ETH.

Crypto Wallet

A crypto wallet is an application or hardware device that allows individuals to store and retrieve digital items (such as cryptocurrencies and NFTs).

Wallet Address

Also known as a "public key." Your wallet address is unique and is used by others to transfer you cryptocurrencies or NFTs. Your NFTs and cryptocurrencies are not stored in your wallet; instead, they are stored on the blockchain under your wallet address. Your software or hardware wallet only contains the keys to your wallet address. On Ethereum, your wallet address starts with "0x". You can also use an ENS domain.

ENS

Ethereum Name Service (ENS) is a domain naming system based on the Ethereum blockchain. ENS domains resolve to wallet addresses, which means you can send NFTs and cryptocurrencies to them.

Priority Fee

Refers to the automatically set "tip" paid to validators for executing transactions on Ethereum. When attempting to purchase an item on Ubox, you may see priority fees that other users are paying if the item has pending transactions.

Private Key

A digital string (usually 256 characters in length) that represents your signature authorizing transactions on the blockchain.

Mnemonic Phrase

A mnemonic phrase consists of a list of words (usually 12-24 words) that can be used to recover your password if you forget it or cannot access your wallet. When you first start using your wallet to transact, you can view your mnemonic phrase and back it up in a secure location. If possible, back it up in multiple locations. When you first create a crypto wallet, you will receive a mnemonic phrase, which you should write down. This is how you back up your keys without actually holding the digits. Also known as a "backup phrase" or "secret recovery phrase." Do not store your mnemonic phrase in an online cloud storage service or share it with anyone.