Frequently Asked Questions
What is a Blockchain?
The Blockchain is literally a chain of blocks. It is digital information that is stored in a public database. They are digital pieces of information with three parts: (1) transactions: day/time, etc. (2) users (3) cryptographic hash - this distinguishes them from each other. There are different types of blockchains:
Ethereum: this is an open-source platform. It is the gold standard for minting NFTs.
Polygon: an Ethereum compatible blockchain. Fast, much lower transaction cost than Ethereum. NFTs created on Polygon can be easily converted to Ethereum tokens by paying gas.
WAX blockchain: primarily for gamers. It offers simple development options to design/deploy decentralized applications where you can create and sell NFTs, similar to an NFT marketplace.
Flow: a blockchain built to support high-performance ecosystems of apps and games. Flow tokens cannot be converted to Ethereum.
What is an NFT?
NFT stands for non-fungible token. “Non-fungible” means that it is unique and cannot be replaced with something else. NFTs are digital assets and are a part of the Ethereum blockchain. Ethereum is a cryptocurrency (i.e. bitcoin/dogecoin), but its blockchain also supports these NFTs, which store extra information that makes them work differently. Blockchain is a dispersed public ledger that records all transactions. This eliminates the confusion of ownership and authenticity.
NFTs are minted (created) from objects ranging from art to music. They can be acquired for a personal collection or sold via auction or a set price.
What is a Drop?
A drop is the release of a limited number of digital collectible editions that are available for purchase at a specific time on a specific date.
Are NFTs New?
NFTs have been around since 2012 but gained popularity with the 2017 release of CryptoKitties.
How Do You Buy an NFT?
There are open marketplaces where sellers create and list their NFTs. These marketplaces require a cryptocurrency wallet installed on your computer or mobile phone in order to buy/sell an NFT. The seller sets the item’s price and buyers bid for it. The highest bidder wins and sends the payment directly to the seller. This transaction triggers the token transfer to the buyer.
What is a Cryptocurrency Wallet and How Do I Get One?
A cryptocurrency wallet is an app that allows users to store and retrieve their digital assets. Software stores your crypto just like physical wallets store your cash/credit cards. This crypto wallet allows you to purchase on the blockchain by storing the unique digital passwords.
Cryptocurrency wallets function by using private and public keys. Working together, they keep information secure and verify purchases on the blockchain. Always make sure to protect your private keys.
A few great cryptocurrency wallet options are: Rainbow mobile wallet; Ledger or Trezor for hardware; or MetaMask (browser extension).
How Do I Install MetaMask?
Step 1. Install MetaMask on Your Browser:
- To create a new wallet with MetaMask you need to install the extension first. You can install MetaMask for Chrome, Firefox, Brave and Opera browsers.
- Open https://metamask.io or search for “MetaMask extension” using your favorite search engine.
- In this tutorial we will be using Google Chrome as an example, but the workflow is the same for all browsers.
- Click Chrome to install MetaMask as a Google Chrome extension.
- Click Add to Chrome.
- Click Add Extension.
Step 2. Create an Account:
- Click on the MetaMask icon in the upper right corner to open the extension.
- To install the latest version of MetaMask, click Try it now.
- Click Continue.
- You will be asked to create a new password. Create a strong password and click Create.
- Proceed by clicking Next, then accept Terms of Use.
- Click Reveal secret words.
- You will see a 12 words seed phrase. Save seed words as a file or copy them to a safe place and click Next (never give this information out).
- Reveal secret words and copy your secret backup phrase to a safe place.
- Verify your secret phrase by selecting the previously generated phrase. When done, click Confirm.
- Congratulations! You have successfully created your MetaMask account.