CRYPTO LINGO GLOSSARY

There’s plenty of crypto lingo we’ll teach you on your NFT collecting journey. Here’s a taste.

Blockchain
Blockchain is a shared, immutable ledger that facilitates the recording of transactions and tracking assets by a network of distributed computers. Virtually anything of value can be tracked and traded on a blockchain network. As each transaction occurs, it is recorded as a “block” of data. Each block is connected to the ones before and after it. These blocks form a chain of data as an asset moves from place to place or ownership changes hands. The blocks confirm the exact time and sequence of transactions, and the blocks link securely together to prevent any block from being altered or a block being inserted between two existing blocks. Each additional block strengthens the verification of the previous block and hence the entire blockchain. This removes the possibility of tampering by a malicious actor — and builds a ledger of automated transactions you can trust.

Gas fees
Relate to transactions made on most NFT trading platforms and cryptocurrency exchanges. Users are responsible for paying for the computing energy required to process and validate transactions on the blockchain, hence the 'gas fee'. Gas fees fluctuate depending on the time of day.

NFT
Stands for non fungible token, meaning each token is unique. An NFT is stored on a blockchain, which is a decentralised, public ledger. An NFT might convey an ownership interest in a piece of digital art, an asset in an online game, a card in a collectible trading card game (think rare baseball cards here), or a plot of land in a virtual world.

Wallet
An app that allows cryptocurrency and NFT owners to store and retrieve their digital assets. When a user acquires cryptocurrency, such as bitcoins, or NFTs, they can store it in a wallet and from there, use it to make transactions. A hot wallet is a digital wallet storage method connected to the internet. A cold wallet is not, it connects to any computer using a USB. Guest Club's hardware wallets are cold wallets, the Ledger Nano S.

Seed recovery phrase
A series of words generated by a digital wallet that gives you access to the cryptocurrency and NFTs associated with that wallet. As long as you have your seed phrase, you’ll have access to all of the cryptocurrency and NFTs associated with the wallet that generated the phrase — even if you delete or lose the wallet.