NFT Art NFT Fundamentals and Concepts 4

Question 1

What is 'wash trading' in NFT art markets?

Accepted Answer

Artificially inflating an NFT's trading volume by buying and selling between controlled wallets

Answer

Wash trading is a manipulative practice where the same entity buys and sells an NFT to themselves to fake high trading volume and inflate perceived value.

Question 2

What is the ERC-721 token standard?

Accepted Answer

The Ethereum standard that defines how non-fungible tokens (NFTs) are created and managed

Answer

ERC-721 is the Ethereum token standard that establishes the rules for creating non-fungible tokens, ensuring each token has unique properties.

Question 3

What is a 'custodial' NFT wallet?

Accepted Answer

A wallet where a third party (like an exchange) holds the private keys on the user's behalf

Answer

A custodial wallet means a third party controls the private keys, meaning they technically have custody of your NFTs, not you.

Question 4

What does 'CC0' licensing mean for an NFT artwork?

Accepted Answer

The creator surrenders all copyright, placing the work in the public domain

Answer

CC0 (Creative Commons Zero) means the creator waives all copyright claims, allowing anyone to use, reproduce, or commercialize the artwork freely.

Question 5

What is 'token gating' in the NFT art world?

Accepted Answer

Using NFT ownership to control access to exclusive content, events, or communities

Answer

Token gating uses NFT ownership as a key to unlock exclusive benefits like private communities, events, content, or services.

NFT - Art Practice Test

NFT - Art Practice Test

NFT Art NFT Fundamentals and Concepts 4