In more ways than one, NFT arts share similar characteristics with physical artworks. If you have a keen interest in collecting digital arts, it is important that you get familiar with some of the most common terminologies that are frequently used in the space. Below are five of the most commonly used terminologies in NFT.
One of One (1:1)
One of One is an NFT term that is commonly used to classify a single digital artwork. Already, we know that NFTs are unique, still, a 1:1 NFT offers scarcity on the blockchain. As is usually the case, no similar NFT ever exist on the blockchain, making them more valuable and with the potential to command huge fees.
At the moment, some of the most expensive NFTs on the blockchain today fall into this category. The unique story-telling that 1:1 NFTs depict has the potential to make them highly valuable. Some of the most popular One of One NFTs include Beeple’s Everyday: The First 5000 days, and HUMAN ONE.
Generative Art
If One of One NFT is one of a kind, then generative arts offer varieties to NFTs. Generative arts are NFTs that are created based on the smart contracts and codes embedded on the blockchain by the art creator.
Usually, the creator defines a set of rules in the blockchain and leaves the creation of the artworks to artificial intelligence. As much as the creator might have a clue into what is expected, the smart contract creates the arts giving them varying patterns, colour, and ultimately defining their rarity. The Crypto Punks collection falls into this category.
Floor Price
The floor price is the least price that you can buy art in an NFT collection. In most cases, it is usually the lowest price that an NFT in a collection can be bought. If you wish to own one of such art you must be willing to buy above the floor price as a failure to meet up to this price means you cannot collect such art. For instance, the floor price of BAYC as of the time of this writing is 77ETH.
Flip
In simple terms, to flip means to collect an NFT only to sell it off almost immediately. Flipping does not have to be immediately though, the collector could decide to hold the NFT for a few days or weeks before selling. Usually, a flip could be a result of a price gain and quick profit.
Ape In
Ape In simply means that you have not done your research before buying an NFT. As a result, you could be buying fake art or even fall for a scam.
Conclusion
Knowing the basic terms in NFT goes a long way in helping you know the space better and keep track of conversations easily.
