WEB3 FAQ

An NFT (also known as a non-fungible token), is a digital certificate for intellectual property recorded on a distributed ledger, such as a blockchain like Ethereum, that certifies authenticity and ownership. NFTs can be almost anything digital, including: art pieces, collectibles, music, memes, video segments and more. Simply put, “non-fungible” means that the NFT is unique and cannot be replaced with something else. “Fungibility” is the ability of an asset or token to be interchanged with other individual assets or tokens of the same exact type. For example, a Bitcoin is a “fungible token,” since you can trade one Bitcoin for another Bitcoin and you'll have exactly the same thing. A “non-fungible” asset or token is anything with unique individual properties and therefore non-fungible. For example, a Gutter Cat is a non-fungible token because it has properties that are unique as identified on the blockchain and cannot be traded for the exact same thing.

Check out the Non-Fungible Token Bible for more detailed information.

“Minting” an NFT is the process of writing a digital item to the blockchain. This is what establishes the NFT’s first immutable record of authenticity and ownership.

Check out OpenSea’s “what is minting” summary for more information.

The blockchain is a decentralized, distributed and public digital ledger (database) that is used to record transactions whereby the record cannot be altered retroactively. We use the Ethereum blockchain as a technology to prove the provenance and ownership of your Gutter Labs digital assets.

An NFT wallet is a wallet in Web3 that may store a holder's cryptocurrency, NFTs or other digital assets. An NFT wallet (also referred to as a Web3 wallet) often has a user-friendly interface that can easily connect and interact with decentralized applications (DApps) on various blockchains such as the Ethereum blockchain through browser extensions. There are a number of digital wallets to choose from, MetaMask being the most commonly used digital wallet in the NFT space.

There are both Web3 “hot” wallets and “cold” wallets. The main difference is that hot wallets are software based and are consistently connected to the internet. Cold wallets, or “hardware wallets,” are a more secure physical wallet, often shaped like a small USB drive that holds digital assets “offline” until connected and unlocked by the owner of the hardware wallet.

Hot wallets are created and secured with a private seed phrase, similar to a password, and function similar to a browser extension (e.g. on Chrome, Firefox, Brave) that allows you to access DApps (decentralized applications) and perform crypto or NFT transactions. MetaMask is the most popular wallet currently in use in the NFT space.

Check out the MetaMask FAQ and step-by-step user guide and Cryptopedia’s more detailed summary on the differences between hot and cold wallets for more information.

Currently, the largest and most frequently used marketplace for NFTs is OpenSea.

A gas fee, or transaction fee, is a blockchain fee that is paid in order to have the transaction processed in a block by network validators that service the blockchain. Holders of Ethereum can expedite transactions by paying higher gas fees.

Check out MetaMask’s guide on how to speed up or cancel a pending transaction to learn more about gas fees and limits, and you can use the ETHGasStation to track gas prices.

ETH, the currency of the Ethereum blockchain, is required in order to purchase Gutter Cat Gang NFTs (digital collectibles). Ethereum may be obtained on a cryptocurrency exchange such as CoinBase or Binance – there are many platforms that allow the purchase of this currency. These platforms allow users to exchange fiat currencies, or government issued funds, for cryptocurrencies. Typically, this requires connecting a bank account which allows for transfers via debit or wire transfers.

There are other apps which allow direct wallet connections which use a third-party exchange that allows the user to buy crypto currency directly via credit or debit cards using fiat.

Some marketplaces also allow for exchange that is directly integrated with the marketplace. Each of these methods differs based on the exchange in use and each provides detailed instruction on how to process each transaction type.

Currently, the largest and most frequently used marketplace to purchase Gutter Cat Gang digital collectibles is OpenSea. Check out OpenSea’s how to buy an NFT guide for more detailed information.

Redeeming (also known as forging in Web3) happens when an NFT is exchanged through a new blockchain transaction in return for physical goods or a new digital collectible. When an NFT is forged or redeemed, it transfers the digital collectible to a burn wallet, where it is essentially destroyed and cannot be transferred out. This mechanism creates deflationary collections, which results in scarcity, or proves that an NFT has been previously redeemed for physical goods to the redeemer. For example, redeeming a DNA-1 Gutter Juice digital collectible burns the token from the holder's Web3 wallet and in return, the holder receives an entirely new digital collectible – a D1 Gutter Clone. Similarly, redeeming a Gutter Merch Collection 1.0 Bundle burns the token from the holder's digital wallet and in return, physical merchandise is shipped to the holder.