Coin Flashcards

What is a 'gas fee' and how does it relate to spending coins on NFT art?

Answer: A transaction cost paid in the network's native coin to process blockchain operations

Gas fees are paid in the network's native coin (e.g., ETH) to compensate validators for processing transactions on the blockchain.

An NFT art project advertises a 'free mint.' What cost might still apply when collecting?

Answer: Gas fees paid in the native coin

Even 'free mint' NFTs require paying gas fees in the native coin (e.g., ETH) to record the transaction on the blockchain.

Which Solana-based coin is used to buy NFT art on Magic Eden?

Answer: SOL

SOL, the native coin of the Solana blockchain, is used for NFT transactions on Magic Eden.

What is a 'floor price' in an NFT art collection, measured in coins?

Answer: The lowest listed price for any NFT in a collection

The floor price is the lowest asking price for any available NFT in a collection at a given moment.

How do creator royalties typically work when an NFT artwork is resold for coins?

Answer: A percentage of the resale price in coins is automatically sent to the creator

Smart contracts encode royalty percentages so the creator automatically receives a cut of each secondary resale in the native coin.

What does 'coin-gating' mean in an NFT art community context?

Answer: Requiring holders to own a specific token or coin to access exclusive content or events

Coin-gating (or token-gating) restricts access to content, events, or communities to verified holders of a specific coin or NFT.

A numismatic artist releases a digital coin series as NFTs. What makes each piece verifiably unique on-chain?

Answer: Each NFT has a unique token ID recorded immutably on the blockchain

Each NFT carries a unique token ID stored on the blockchain, making it cryptographically distinct from every other token.