FAQ & GLOSSARY
Our FAQ and glossary are your point of contact for answers to the most common questions about NFTs. If you are missing any information, please feel free to contact us!
A contract that is automatically executed when predefined conditions are met. These contracts are executed on the blockchain network, are irreversible and cannot be changed.
ETF stands for Exchange Traded Fungible. This means that the 10,000 memberships of the ARTHOUZE Gallery are identical and can be traded at any time. To use the membership rights, it is not necessary to buy or sell the ARTHOUZE Gallery NFTs individually. Only the Membership. An ETF Membership NFT ™ offers the advantage that you can buy and sell several memberships at any time. This, without having to purchase or sell individual NFTs, as these remain in the ARTHOUZE Gallery. An ETF Membership NFT ™ thus offers simple, innovative and individual access to the NFT asset class. Without any other complexity.
ETF steht für Exchange Traded Fungible. Das bedeutet, dass die 10.000 Mitgliedschaften der ARTHOUZE Gallery identisch sind und jederzeit gehandelt werden können. Um die Mitgliedschaftsrechte zu nutzen, ist es nicht notwendig, die ARTHOUZE Gallery NFTs einzeln zu kaufen oder zu verkaufen. Nur die Mitgliedschaft. Eine ETF-Mitgliedschaft NFT ™ bietet den Vorteil, dass Sie jederzeit mehrere Mitgliedschaften kaufen und verkaufen können. Dies, ohne einzelne NFTs kaufen oder verkaufen zu müssen, da diese in der ARTHOUZE Gallery verbleiben. Eine ETF-Mitgliedschaft NFT ™ bietet somit einen einfachen, innovativen und individuellen Zugang zur Anlageklasse NFT. Ohne jede weitere Komplexität.
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Imagine an open register to which every participant has access and which records all changes and transactions. Here, users can check ownership.
The official published document of a digital project team that shows investors detailed technical information about the concept.
A whitelist is a special list of wallet addresses that are given access to an NFT sale or minting before the general public.
A digital wallet where users can store and manage their digital assets, e.g. NFTs.
An NFT can stand for all sorts of things. Here are examples of how NFTs are used today and what possible implementations might look like in the future.
- Art: Many artists create incredible and innovative works using NFTs. For example, English artist, entrepreneur and art collector Damien Hirst created “The Currency,” a collection of 10,000 NFTs equivalent to 10,000 unique physical works of art.
- Profile Pictures (PFPs): Profile pictures are probably the most talked about projects you’ve heard of, such as Bored Ape Yacht Club (BAYC), Doodles, World of Women (WoW). These projects have now gained worldwide fame. For many people on the Internet, these PFPs have become their online identity. They not only identify with the community, but also strongly identify with their NFT. PFP projects also focus on benefits to the owner, such as the famous BAYC yacht party and community, or WoW, which donates a portion of your sales proceeds to women-specific charities.
- Collectibles NFTs give a new direction to traditional collectibles. Instead of a physical basketball trading card that you probably keep in some folder, you can now collect dynamic NFTs from the NBA’s “The Association” collection, where each card changes and displays on a screen depending on the performance of the player and team.
- Domain names Naming standards such as the Ethereum Naming Service (ENS) have been developed for naming wallets, websites, and other blockchain applications. This helps make the blockchain more user-friendly, with more readable names and built-in verification.
- Memberships Brands like Proof Collective, Coachella, and NFTARTHOUZE are using NFTs to offer exclusive tickets, passes, and memberships. Proof Collective is a members-only NFT community responsible for highly successful projects like Moonbirds. Coachella launched its NFT marketplace, collections and lifetime passes in 2022. ARTHOUZE Gallery allows its members to be part of an international gallery.
- Gaming NFTs for games are revolutionary because of their usefulness, ownership, and interoperability. This category is still relatively new and on the rise. Many players are excited about the possibility of using in-game items in multiple games and no longer being subject to the control of a single vendor. Aurory Project: A game studio that uses the Solana Blockchain to manage ownership of in-game items.
Virtual Worlds: Decentraland and The Sandbox are examples of blockchain-based Metaverse projects. The Sandbox: the virtual world building game sold virtual land NFTs that allow owners to create events and experiences within the game’s Metaverse. Decentraland: The virtual reality platform allows users to buy and sell virtual land parcels as NFTs. These parcels can be used for events, art galleries and more.
A digital marketplace for NFTs is an online platform where NFTs can be bought, sold and traded. Similar to a traditional marketplace. A digital NFT marketplace allows users to offer and trade their NFTs with other users.
Transactions on these digital marketplaces are usually done via cryptocurrencies such as Ethereum and require a wallet to store the NFTs purchased. Popular NFT marketplaces offer features for discovering, valuing and trading different types of NFTs. Making them one-stop-shops for the NFT community. An example of such a marketplace is OpenSea.
The set of activities or development plans for an NFT project. A project with a solid roadmap is generally seen as potentially more sustainable and long-term. Than a project without predictable updates.
Minting originally means “to make” and refers to the production of a coin by minting metal. It can also mean making something for the first time.
Mining an NFT means creating it on a blockchain and putting it into circulation. Once an NFT file is created on a blockchain it can be sold and traded, the blockchain automatically stores all this information. Minting is also known as tokenisation.
Currencies issued by governments (e.g. USD, Euro and GBP) that are not pegged to the price of a commodity such as gold or silver.
With an NFT, you typically own a unique digital asset that represents ownership or proof of authenticity of a specific item, artwork, collectible or digital content. Owning an NFT grants you certain rights, which may vary depending on the NFT and the conditions attached to it.
How do NFTs work? NFTs work with blockchain technology. The blockchain is a large, digital, decentralised and public data set.
Instead of a central, company-owned server, the blockchain is distributed across a peer-to-peer network. The blockchain records all data and transactions as blocks that are linked together and is uniquely able to maintain verifiable authenticity and digital ownership.
When someone puts on, transfers, buys, sells or does anything else with an NFT, it is all recorded on the blockchain.
This record enables authentication and serves as a permanent record of authenticity. This information can be viewed or accessed by anyone.
When you buy a piece of art or a collectible, you usually get a paper certificate of authenticity. This can easily be forgotten, lost or destroyed, making the system of authenticity vulnerable.
Blockchains offer a simple and more secure solution to the long-standing problem of proving authenticity.
What is an NFT? NFT stands for “non-fungible token”. Basically, it is a digital certificate that represents the ownership rights to a unique digital object or asset on the blockchain.
Fungible tokens are interchangeable and have the same value. Examples include traditional currencies such as the US dollar or Ethereum tokens such as ERC-20, where each unit is of equal value. For example, if you exchange one US dollar for another US dollar, the value does not change.
Non-fungible tokens (NFTs), on the other hand, are unique and non-exchangeable. Each NFT represents something unique, be it a digital work of art, a collector’s item or a specific property right. Each NFT has individual characteristics and its own value. Even if two NFTs display the same digital image, they may differ in their ownership, history or other unique characteristics, making them non-interchangeable.
NFTs use this uniqueness to represent digital possessions, which makes them particularly attractive in areas such as digital art, collectibles and games. Their uniqueness and distinctiveness are at the core of their value and differentiate them from fungible tokens.
It’s not about choosing between different options, it’s about discovering the different benefits. You can either visit a gallery on site or stream the NFTs from the ARTHOUZE gallery to your personal device, wherever you are. This gives you the opportunity to present the NFTs on a wall screen in your living room. The selection of images shown can be changed at any time.
The ARTHOUZE Gallery brings art and entertainment to your home, just like streaming TV brings movies to your home.
Gas / Brokerage is a fee that must be paid for transactions on the Ethereum blockchain. It therefore represents the costs required to execute a transaction. Be it the purchase, sale or transfer of an NFT, similar to the fees for buying a share.
How is gas calculated?
The gas / brokerage price is calculated based on the complexity of the transaction and the current network load. The more complex the transaction or the more utilization there is on the Ethereum blockchain, the higher the gas fee can be. It is important to keep an eye on gas fees. They can have a direct impact on the overall cost of an NFT transaction. Especially during times of high network utilization, gas fees can rise sharply.
How to minimize or control gas costs?
There are tools and services that display current gas / brokerage prices. That will allow users to choose the best time for their transactions to minimize gas fees. In quieter times on the blockchain, gas fees can be lower, reducing the overall cost of NFT transactions.
Crossmint.com is a platform that enables NFT issuers to create and manage their own NFTs. It provides tools and services to facilitate the entire process of NFT creation, management and trading. The platform provides support for the entire lifecycle of NFTs. It also offers a wallet-as-a-service service. We use Crossmint for payment processing, booking and also as a wallet provider for our customers who do not yet have their own wallet.
The Ethereum token standard, ERC-1155 and ERC-721, non-fungible tokens (NFTs) differ mainly in the way they are created and handled:
ERC-721: Each token created according to the ERC-721 standard is unique and individual. An ERC-721 token always represents a specific object or asset. Each token has its own identity and metadata, which makes it unique. Example NFT project “Bored Apes”.
ERC-1155: In contrast, the ERC-1155 standard can be used to create both fungible and non-fungible tokens. It allows a smart contract to hold any number of token types. A single contract can manage both fungible tokens and NFTs, creating efficiency in management and transactions, saving costs and allowing multiple tokens to be traded in one transaction. This makes it attractive for gaming, digital collectibles and token asset management.
In summary, while ERC-721 treats each token as unique, ERC-1155 allows the management of different token types within a single contract.
