Advanced NFT Mechanics Flashcards

What defines a soulbound token (SBT)?

Answer: A non-transferable token bound to one address

Soulbound tokens are non-transferable, permanently tied to the holder's address.

What is fractionalization of an NFT?

Answer: Splitting one NFT into many fungible ownership shares

Fractionalization locks an NFT in a vault and issues fungible tokens representing partial ownership.

Why is on-chain (fully generative) NFT art notable compared to off-chain images?

Answer: The artwork is generated and stored entirely on the blockchain

On-chain art stores the generative logic/data on-chain, removing dependence on external hosting.

What does a 'reveal' mechanism typically do in an NFT drop?

Answer: Swaps placeholder metadata for final metadata after mint

A reveal updates the baseURI or tokenURI so final art/metadata is shown only after minting completes.

What is provenance hashing used for in NFT collections?

Answer: Proving the metadata order was fixed before mint

A provenance hash committed before mint proves the assignment of art to token IDs was not manipulated.

Which storage approach makes NFT image data most resistant to disappearing?

Answer: Arweave permanent storage

Arweave offers pay-once permanent storage, making hosted assets highly durable.

What problem does a merkle-tree allowlist solve in minting?

Answer: Verifies eligibility cheaply without storing every address on-chain

A merkle root lets the contract verify an address is allowlisted via a proof, avoiding costly on-chain address lists.