Understanding NFTs and Web3: Key Terms and Concepts

Unlock the language of NFTs and Web3 to navigate the world of digital assets confidently on KEX.

What is an NFT

An NFT (Non-Fungible Token) is a unique digital asset stored on a blockchain that cannot be exchanged on a 1:1 basis. Unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are one-of-a-kind and possess distinct attributes. Examples include:

• Digital Art

• In-game Items

• Music & Albums

• Collectibles

• Virtual Real Estate

NFTs enable transparent ownership and verifiable authenticity, empowering creators, gamers, and collectors to participate in the evolving digital economy.

Key Terms to Know in NFTs and Web3

Blockchain

A blockchain is a decentralized digital ledger that securely records transactions and ownership across a network. KEX supports multiple blockchains, including Ethereum, Polygon, and BSC.

Collection

A collection is a group of NFTs created by an artist, developer, or project. Think of it like a digital gallery or store.

Crypto Wallet

A crypto wallet is an application or hardware device used to securely store, send, and receive digital assets like cryptocurrencies and NFTs. Popular wallets include MetaMask and Ledger.

Cryptocurrency

Digital currencies used to trade assets on the blockchain. Examples include ETH (Ethereum), MATIC (Polygon), and BNB (BSC).

dApp (Decentralized App)

A blockchain-integrated app that interacts with smart contracts. Examples: KEX Marketplace, Uniswap.

ENS (Ethereum Name Service)

A domain-naming service that maps human-readable names (e.g., yourname.eth) to Ethereum wallet addresses.

Gas Fees

Transaction fees paid to validators on a blockchain. Gas fees fluctuate based on network congestion.

Gwei

A small denomination of ETH, used to calculate gas fees. 1 Gwei = 1 billionth of an ETH.

Floor Price

The lowest price of an NFT in a collection at any given time. It reflects market demand.

Seed Phrase

A 12–24 word recovery phrase used to restore access to your crypto wallet. Store it securely, offline, and never share it.

Smart Contract

Self-executing code stored on a blockchain that powers NFT transactions and dApps.

Wallet Address

Your unique public key for receiving NFTs or cryptocurrency. On Ethereum, it starts with “0x”. Example: 0x123abc456...

The Power of Ownership

NFT ownership is publicly recorded on the blockchain, creating an immutable record of who owns what. Your wallet address acts as your proof of ownership, ensuring transparency and security for your digital assets.

For gamers, this means:

• True ownership of in-game items.

• Seamless trading and interoperability across games on KEX.

• Protection against duplication or fraud.

Use Cases of NFTs

🎨 Digital Art

NFTs allow artists to monetize and protect their creations. Smart contracts ensure artists earn royalties from every resale.

🎮 Gaming

KEX brings NFTs to life for gamers with unique:

• Characters, skins, weapons, and items that can be owned, traded, or sold.

• Cross-game compatibility and true ownership of assets.

🎵 Music

Musicians can tokenize their:

• Albums, songs, and concert tickets.

• Exclusive content for fans and collectors.

🃏 Collectibles

NFTs unlock rare digital collectibles, like trading cards and virtual memorabilia, appealing to enthusiasts and investors.

Why Web3 Matters

Web3 introduces a decentralized internet powered by blockchain, ensuring:

• Transparency: Trustless ownership and transactions.

• Ownership: Users own their assets and identity.

• Community Empowerment: Fans and creators drive project growth.

At KEX, we are building a gamer-centric ecosystem where NFTs power the next generation of digital ownership and commerce.