Did you know immutable means: not capable of or susceptible to change? Like, say, the Law of Physics, or NFTs. It always helps to know the true meaning of words to help you wrap your head around any language.
This is why, whether you’re a new starter or in need of a refresher, the below terms will ensure you’re fully understanding everything going on at Immutable X.
Blockchain: Blockchains are systems of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
NFT: NFTs (Non-Fungible Tokens) are unique digital assets that are secured and contained on the blockchain. The blockchain verifies ownership, provenance, and transaction history.
Asset: A crypto asset is a cryptocurrency or asset that has been tokenized, which is the transfer of an object's value to a blockchain.
Gas: The blockchain depends on processing power provided by a decentralized network of computers. “Gas fees” are what the members of this network earn in return for the processing power they provide. These fees can fluctuate according to the amount of traffic on the blockchain at any given moment.
Protocol: Protocols are crucial components of Blockchain technologies, and are essentially rules that define how data is allowed to be transferred between different computer systems.
Ethereum: The second-largest cryptocurrency network following bitcoin known for its secure ecosystem. It is a Layer-1 scaling solution.
Ether (ETH): Ether is the cryptocurrency of the Ethereum network. It can be used as a digital currency, and can also process other financial transactions, execute smart contracts and store data for third-party applications.
Wallet: Your crypto wallet is where you can view your cryptocurrency assets and transactions, all in one place. It’s also where you confirm any transactions in process. Different wallets have different features. For example, some allow you to view NFTs from a smartphone.
Minting: NFTs are created through a process called minting. On the Ethereum network, a command is run that creates the NFT as an immutable record, providing it with a unique hash that contains all of the metadata. The metadata stores key contextual information about your NFT, like its current ownership and transaction history. Sites including opensea.io and etherscan.io allow you to view your NFT collection and NFTs in other collections.
Layer-1 and Layer-2 Networks: A Layer-1 network refers to a blockchain, while a Layer-2 protocol is a third-party integration that can be used in conjunction with a Layer-1 blockchain. Bitcoin, Litecoin, and Ethereum are Layer-1 blockchains. Immutable X is a Layer-2 protocol.
MetaMask: A browser extension that allows users to manage their wallets. Metamask is the most popular wallet and is integrated into most platforms and Web3 sites.
Seed phrase: A seed phrase is a group of random words generated by your wallet when you first set it up. It’s important to not lose your seed phrase, so keep a record.
Staking: Staking is essentially putting your cryptocurrency to work by earning extra passive income from your assets. The more crypto staked, the higher the potential rewards.