NFT Coin 2

Question 1

In NFT art marketplaces, what does a 'coin' typically refer to when used as a unit of exchange?

Accepted Answer

A fungible cryptocurrency token used to buy and sell NFTs

Answer

In NFT art marketplaces, 'coin' typically refers to a fungible cryptocurrency token like ETH or SOL used to transact.

Question 2

Which blockchain's native coin is most commonly used to purchase NFT art on OpenSea?

Accepted Answer

Ether (ETH)

Answer

Ether (ETH), the native coin of the Ethereum blockchain, is the dominant currency for NFT art transactions on OpenSea.

Question 3

What is 'minting' in the context of coin-backed NFT art projects?

Accepted Answer

Creating a new NFT token on the blockchain for the first time

Answer

Minting means creating and recording a new NFT on the blockchain, making it available for ownership.

Question 4

A collector pays 2 ETH for a coin-themed NFT artwork. If ETH is priced at $2,000, what is the USD value of the purchase?

Accepted Answer

$4,000

Answer

2 ETH × $2,000 per ETH = $4,000 USD.

Question 5

What differentiates a 'coin' from a 'token' in blockchain terminology relevant to NFT art?

Accepted Answer

Coins exist on their own native blockchain; tokens are built on top of existing blockchains

Answer

Coins (like ETH or SOL) operate on their own native blockchains, while tokens (like ERC-20s) are built on top of those networks.

NFT - Art Practice Test