Marketing assets

Metaverse and Web3 Marketing Glossary – key words and terms brands need to know

Discord: A social chat room platform that serves as a popular home base for Web3 communities, such as members of an NFT collection or a DAO. The platform has around 6.7 million different groups, called servers, at the time of writing.

Drop: Another word for releasing an NFT or NFT collection on a marketplace.

Ethereum: The most popular blockchain for NFTs, accounting for around 80% of the market share, per a JPMorgan study cited by CoinDesk. Ether is the platform’s cryptocurrency, which is the second most popular crypto behind bitcoin. Different from the Bitcoin blockchain, however, is that Ethereum is more than a platform for sending and receiving digital currency, especially through its ability to support smart contracts and therefore NFTs, DeFi and more.

FOMO: Acronym for “fear of missing out”, FOMO has been co-opted by the crypto community to describe the pressure one feels to invest in an asset (i.e. a coin, NFT, etc. ) which could increase in value over time.

Sign up for Ad Age’s Metaverse Marketing newsletter.

FUD: An acronym for “Fear, Uncertainty and Doubt”, FUD is a term that summarizes the negative feeling or pessimism towards an activity. In crypto, the word is usually used dismissively to characterize non-believers or such feelings towards a project. For example, a member of a specific NFT community may accuse someone of showing FUD if they do not believe in the potential of that NFT collection to generate value.

gas costs: Transaction fees for any function performed on the Ethereum blockchain, such as buying NFTs. The price of gas depends on the level of activity on the network, ranging from a few dollars during periods of low activity to several hundred dollars during periods of intense congestion. The average gas fee for an Ethereum transaction at the time of writing is $11.14, by Cointelegraph.

Gas War: A situation on the Ethereum blockchain in which increased demand for transactions clogs the network, creating a bottleneck effect where users struggle to get their transactions authorized. Gas charges will also increase enormously, hence the term “gas war”.

Related: Behind VaynerSports’ Failed NFT Sale

Interoperability: The ability for a user to move seamlessly between platforms with their own assets.

MetaversePart gaming ecosystem and part virtual lifestyle platform, the Metaverse is a collection of interoperable digital worlds, where users can create content and interact with others as avatars or digital versions of themselves.

Watch: Industry Leaders Discuss the Metaverse

mint: To publish an NFT on a blockchain.

Non-fungible token (NFT): A non-fungible token is a certificate proving the authenticity and uniqueness of a digital asset. It is not the asset itself, but rather a unit of data that proves ownership of the asset and is ideally stored on a blockchain to ensure the data is incorruptible.

Read more: How brands are using NFTs

OpenSea: The most popular marketplace for NFTs, accounting for over 60% market share. OpenSea currently supports three chains: Ethereum, Polygon (which is built on top of Ethereum), and Klatyn.

open-source: When the software is made available to the public for the purpose of collaboration and transparency. Blockchain-based platforms often make their code open source in order to build trust with users, while also inviting them to help strengthen the code through debugging.

Private key: file used to access cryptographic transactions associated with a public key. It is a mechanism that proves someone’s ownership of that crypto, allowing them to spend it. Private keys should never be shared with anyone.

Proof of Presence Protocol (POAP): Contrary to its name, a POAP is not a consensus mechanism but rather an NFT that proves that the holder attended a respective physical or virtual event. POAPs are created through a special smart contract (the protocol) and are typically collected to preserve memories of experiences. They must include an image, description, date and time of the event in question.

Proof of Stake (PoS): Proof of Stake is a consensus mechanism that relies on staking, in which computers (called validators) set aside an amount of crypto as collateral in order to receive a chance to add blocks/coins to the ecosystem, after which they are also rewarded. This method requires much less energy to create new blocks and coins, and is currently used by less popular but growing chains like Tezos, Solana, and Cardano. Ethereum also plans to move to PoS this summer, after which it will be known as Ethereum 2.0.

Read more: Why Kanye’s stance on NFTs hit a chord

Proof of Work (PoW): Proof of work is a mining-based consensus mechanism, in which computers (called miners) compete to solve a cryptographic mathematical puzzle. The first miner to solve the puzzle correctly can add the new block/coins and wins a crypto reward. PoW is used by the two main blockchains, Bitcoin and Ethereum, but despite its level of experience, it is known to be exceptionally energy intensive.

Public key: An address that is used to receive crypto and other digital asset transactions. It is a string of cryptographic code that acts as a secure box, the contents of which can only be opened by a corresponding private key. Public keys are generally safe to share with others as they do not permit the funds in question.

starting sentence: Essentially a password that allows a user to access their wallet. It comes in the form of a series of 12-24 randomly generated words (i.e. “witch”, “bull”, “star”, etc.). Since seed phrases provide access to private keys, they should never be shared with anyone.

Smart contract: A smart contract is the mechanism by which NFTs are minted and transferred. It is a computer program that, when executed, performs a function without the need for third parties, and is also used in areas outside of NFTs, such as DeFi (decentralized finance).

Sign up for the Ad Age Influencer Marketing newsletter.

Virtual goods: Assets that exist on virtual platforms and are owned and used by avatars, usually in the form of NFTs. These goods often reflect real-world assets, such as clothing (called wearables) and furniture. They are considered essential parts of the metaverse economy.

Virtual land: Real estate parcels formatted as NFTs and existing on virtual platforms, such as The Sandbox and Decentraland. Landlords can buy or lease their land in the primary and secondary markets and develop it however they wish, from building stores that sell virtual goods to creating music festivals with performances on the platform. Much like real estate, plots are acquired as fixed plots and cost real money (the average for smaller plots is around $11,000), although transactions are made using platform-native cryptocurrencies.

Read more: What brands need to know about buying virtual land

Virtual Reality (VR): Virtual reality is a technology that immerses the viewer in a fully digital experience, as opposed to only partially through augmented reality. An example of a VR tool is Meta’s Oculus headset.

Wallet: Also known as a crypto wallet. It is a tool for securely storing private and public keys, which are used to access cryptocurrencies and digital assets belonging to an individual. Wallets can be “hot”, i.e. connected to the internet (e.g. apps like MetaMask and Coinbase Wallet), or “cold”, i.e. disconnected from the internet (e.g. , external hard drives).

Web3: The vision for the next iteration of the Internet. Unlike the current system (Web2), which is controlled by walled gardens like Google and Facebook, Web3 emphasizes user ownership – of data, content and assets – through the interoperability of metaverse platforms. and the decentralized nature of blockchain technology.