Frequently Asked Questions about NFTs

Digital art is a term used to describe art that is made or presented using digital technology.

https://www.tate.org.uk/art/art-terms/d/digital-art
(Accessed 5/08/2024)

Generative art is made entirely or partially using an autonomous system.

https://magazine.artland.com/generative-art/
(Accessed 5/08/2024)

A term referring to NFTs that “live” on the blockchain; in other words, both the smart contract tied to the NFT and the media content of the NFT (the art) are written into the blockchain.

https://www.moma.org/collection/terms/on-chain-art
(Accessed 10/06/2024)

A non-fungible token (NFT) is a unique digital identifier that cannot be copied, substituted, or subdivided. It is recorded on a blockchain and used to certify ownership and authenticity. NFT ownership is documented in the blockchain, enabling the sale and trade of NFTs. As uniquely identifiable assets, NFTs differ from cryptocurrencies, which are fungible (the ability for a token to be interchanged with another token).

NFTs have gained popularity in recent years for representing a wide variety of digital assets, including art, music, and collectibles.

The technical aspects of NFTs are underpinned by blockchain technology, a distributed database ensuring secure, transparent, and tamper-proof transactions. NFTs are generated using smart contracts, which are self-executing agreements stored on the blockchain. Upon NFT creation, the smart contract allocates a unique identifier and records its ownership within the blockchain.

https://www.coindesk.com/learn/non-fungible-terms-nft-lingo-every-collector-should-know/
(Accessed 5/12/2024)

https://ccaf.io/cbnsi/about/faq
(Accessed 5/12/2024)

Art Blocks is a platform for artists to publish unique editions of generative art. Chosen through a highly selective application process, and mentored in development, artists upload their creative code on Art Blocks. When a collector purchases a work, they trigger the creation of a never-before-seen iteration of the artist’s project in the form of an NFT artwork.

At Art Blocks, artists use creative code to create varied, generative art that evolves each time a collector mints a piece. The piece manifests as a unique work on the Ethereum blockchain and is shared by artist, collector, and community at the same moment, together.

https://www.artblocks.io/legacy/info/how-it-works
(Accessed 5/12/2024)

Minting refers to the creation of an NFT. On Art Blocks, minting occurs when the collector purchases an artwork. The purchase transaction generates a random output (a seed) and the artist’s algorithm, in turn, uses this input to generate a unique NFT.

https://www.artblocks.io/legacy/info/how-it-works
(Accessed 5/12/2024)

Ethereum is an open software protocol and a peer-to-peer (P2P) network that allows users to transact online without relying on trusted intermediaries. The system operates without a central authority, making it a permissionless platform that enables anyone in the world to send, store, and receive digital tokens of value without the need for prior approval.

Ethereum’s native token is called ether, or ETH for short, and is used when interacting with the network. What sets Ethereum apart from other blockchain networks, such as Bitcoin, is its Turing-complete language, which allows for complex smart contracts that have enabled promising use cases, including decentralized applications (dApps), decentralized finance (DeFi), and decentralized autonomous organizations (DAOs).

On September 15, 2022, Ethereum underwent a significant change by transitioning from a proof-of-work-based consensus mechanism to proof-of-stake. This unprecedented move drastically reduced the networks energy consumption as the computationally intensive process of proof-of-work has been replaced by providing financial resources as collateral (so-called staking).

https://ccaf.io/cbnsi/about/faq
(Accessed 5/12/2024)

Turing completeness is a term in computer science that describes the ability of a system to compute any possible calculation or program, and can be used to describe modern programming languages (Python, C++, etc.). Turing complete describes a programmable system that can solve any computational problem.

https://www.bitstamp.net/learn/blockchain/what-is-turing-complete/
(Accessed 5/12/2024)

Ethereum Mainnet uses proof-of-stake, but this wasn't always the case. The upgrade from the original proof-of-work mechanism to proof-of-stake was called The Merge.

The Merge refers to the original Ethereum Mainnet merging with a separate proof-of-stake blockchain called the Beacon Chain, now existing as one chain. The Merge reduced Ethereum's energy consumption by ~99.95%.

The Merge | ethereum.org
(Accessed 5/12/2024)

A new report from CCRI (Crypto Carbon Ratings Institute), commissioned by Consensys, reveals that the transition from Proof of Work to Proof of Stake has reduced the electricity consumption and carbon footprint of the Ethereum network by over 99.988 % and 99.992%, respectively.

Ethereum is a green blockchain. Ethereum's proof-of-stake consensus mechanism uses ETH instead of energy to secure the network. Ethereum's energy consumption is approximately ~0.0026 TWh/yr across the entire global network.

Ethereum Blockchain Eliminates 99.99% of its Carbon Footprint Overnight After a Successful Merge According to New Report | Consensys
(Accessed 5/12/2024)

Ethereum Energy Consumption | ethereum.org
(Accessed 5/12/2024)

Smart contracts are self-executing programs that run on, for instance, Ethereum Virtual Machine-compatible blockchains. They are written in a high-level programming language called Solidity, and are used to automate the execution of transactions and the exchange of assets on the blockchain. Smart contracts are designed to be autonomous and self-governing, meaning that once they are deployed on the blockchain, they can be executed automatically without the need for intermediaries or third-party validators. They are also transparent and tamper-proof, meaning that their code and execution history is publicly visible and immutable.

https://ccaf.io/cbnsi/about/faq
(Accessed 5/12/2024)

A carbon offset unit represents the removal of one ton of carbon dioxide equivalent (t CO2e) from the atmosphere or the avoidance of one ton of emissions. Offset units are generated and sold by projects that deliver measurable reductions in greenhouse gas emissions. Offsets can be certified by one or multiple third parties, like Gold Standard, Verra, and others.

For a project to be certified, the projects must satisfy the criteria of "additionality". This means that these projects depend on the revenue generated from the sale of offsets. In other words, without the sale of carbon offsets, the carbon reduction project would never have taken place.

https://offsetra.com/faq
(Accessed 5/12/2024)

https://offsetra.com/profile/artblocks (2022)