NFTs are on a rise in the 21st century. There are many who are making their luck in them, while there are others who are still unaware of the concept and the terminologies used in the NFT trading. One such term is NFT Whitelist. So, here we are with the post on “What Is NFT Whitelist”.
In the case of NFTs, whitelisting is the process of getting a crypto wallet address pre-approved for a future NFT mint (also called a “drop”). Since most NFTs are launched on the Ethereum blockchain, the address being whitelisted would be your public Ethereum (ETH) address.
We will be discussing more NFT whitelists. What does it mean and how can it be helpful? What is it used for and how can you be a part of this NFT whitelist. So, without wasting much of your time, let’s get started
What Does It Mean To Be Whitelisted?
To be whitelisted means that you have gone through the process/steps, as defined by the NFT project team, of getting your ETH address pre-approved to mint an NFT at some predefined date and time.
Usually, this date and time for whitelisted addresses are set as a window of time. For example, some projects may allow whitelisted addresses to mint an NFT anytime within a predefined 48-hour period.
What Is Whitelisting Used For?
Whitelisting is typically used for 2 general purposes:
- To reward early support of an NFT project.
- To prevent a “gas war”.
Related: Kevin Smith NFTs | Craze Of Filmmaking Has Entered Meta World
How Do You Get Whitelisted?
There are 3 general steps to getting whitelisted for an NFT project:
- Find a project before they launch.
- Join the project’s Discord group.
- Follow the instructions for getting whitelisted.
What Are The Benefits Of NFT Whitelisting?
Whitelisting is an important part of the NFT ecosystem as it adds a layer of security to the blockchain as well as increases efficiency and transparency. NFT whitelist has been designed to reduce the risk of fraudulent activities and high-value token losses among other things.
Here are some of the benefits of using NFTs on a whitelisted blockchain:
1. Greater Transparency
The NFTs and the ERC-721 tokens on the blockchain are easily verifiable. This is because all NFTs have their own blockchain addresses making them easy to track.
Related: Solana NFT On OpenSea | How To Buy It?
The blockchain does not allow users to post their unique NFT cards even if they wanted to, thanks to the fact that all transactions are verified and confirmed before they can be verified by the network. This, therefore, keeps users from sending out their unique cards to the wrong hands.
3. Reduced Fraud
Since users need to whitelist their accounts before being able to trade on the chain, there is a reduced risk of fraud. For example, a user cannot send out an item in exchange for another item worth a lot more than it is supposed to be as it will require a corresponding trade on the blockchain.
4. Increased Efficiency
With only verified users allowed into the chain, there is increased efficiency since each transaction will be completed faster than in other blockchains where anyone can access it.
5. Reduced Transaction Fees
Since all transactions will be initiated by only verified accounts, there are lower transaction fees involved compared to other exchanges that accept any type of transaction from any user at any time.
Related: How To Put NFT In A Smartwatch? Flaunt Your NFT Everywhere!
Here we conclude our post on NFT whitelists. We have covered everything related to NFT whitelists. You can now enjoy your own NFT whitelist. We have also discussed its benefits. So take the benefits and start enjoying the drops.
Keep exploring our website to know more about NFTs.
Frequently Asked Questions
Q. What Does It Mean To Be Whitelisted In Crypto?
Whitelisting is an opt-in security feature in the Address Book. It enables crypto withdrawals to go only to addresses (external or Coinbase) already designated in your Address Book. To enable (or disable) Whitelisting, hit the toggle to switch.
Q. What Does Minting NFT Mean?
NFT stands for “non-fungible token,” a type of digital certificate built on a blockchain — usually Ethereum — that guarantees ownership of a unique digital asset. Minting digital assets (everything from art to music to articles) as NFTs is one way for artists to monetize their work.
Q. What Is A NFT Policy?
The policy ID stems from a policy script that defines characteristics such as who can mint tokens and when those actions can be made. Many NFT projects make the policyID under which the NFTs were minted publicly available, so anyone can differentiate fraudulent/duplicate NFTs from the original tokens.