NFT Cheat Sheet 2026

The 30 highest-yield NFT facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. How do NFTs function? → Using Blockchain (a distributed public ledger)
2. What is the role of a 'curator' in the NFT art ecosystem? → To select, promote, and contextualize NFT artworks for collectors and audiences
3. What is 'generative art' in the NFT space? → Artwork produced algorithmically using code and randomized parameters
4. An NFT artist releases a second collection that underperforms. How does this typically affect valuation of their first collection? → It often causes the first collection's floor price to decline
5. What does 'first sale doctrine' mean in the context of NFTs? → Once a copyright owner sells a copy, they cannot control its resale
6. What is a 'soulbound' NFT in the context of art and smart contracts? → A non-transferable NFT permanently bound to the original recipient's wallet
7. Why might an NFT smart contract include a 'withdraw' function? → To allow the contract owner to retrieve ETH accumulated from mint sales
8. A pop-up on an NFT site says your wallet is 'compromised' and asks you to enter your seed phrase to secure it. What is this? → A phishing attack designed to steal your seed phrase
9. A photographer's image is used without consent to create an NFT. What is the appropriate first legal step for the photographer? → Issue a DMCA takedown notice to the platform
10. What is a 'lazy mint' and why is it beneficial for artists just starting out? → Deferring the actual blockchain transaction until the NFT is first purchased by a buyer
11. What is a 'moral right' in the context of art copyright, and how does it apply to NFTs? → The right of the artist to attribution and to object to distortion of their work
12. What is the significance of the 'verified' checkmark on an NFT collection page on OpenSea? → The collection meets a minimum trading volume threshold and has verified ownership
13. What is Snowfro (Erick Caldwell) most famous for in the generative NFT art space? → Founding Art Blocks and creating the Chromie Squiggle collection
14. What does 'lazy minting' mean in the NFT context? → Deferring on-chain minting until the NFT is purchased
15. In numismatic-inspired NFT art, what does 'provenance' track similarly to the history recorded on a rare coin's certificate? → The ownership history of an NFT recorded on the blockchain
16. Which smart contract audit practice is most important before investing in a new art NFT collection? → Reviewing an audit report from a reputable third-party security firm
17. What is 'minting price' as distinct from 'gas fee' when purchasing an NFT at launch? → The base cost set by the creator to acquire the NFT
18. Which of the following best describes a 'derivative work' in copyright law? → A work based upon and incorporating elements of a pre-existing copyrighted work
19. Why is using a separate 'burner' wallet recommended when minting NFTs from unknown new projects? → It limits exposure so a malicious contract can only access that wallet's limited funds
20. What does 'wash trading' mean in the NFT art market? → Artificially inflating an NFT's price by buying and selling it between controlled wallets
21. A generative AI creates an image that is minted as an NFT. Under current U.S. law, who holds the copyright? → Potentially no one — AI-generated works may lack copyright protection
22. What is 'gas' in the context of minting an NFT on Ethereum? → A fee paid to miners/validators to process and confirm transactions
23. Which factor most directly reduces an NFT's rarity score in a generative collection? → Having a high number of common trait combinations
24. Which of the following best describes 'on-chain' NFT storage? → Encoding the artwork and metadata directly into the blockchain itself
25. What is a 'royalty' in an NFT smart contract context? → A percentage of secondary sales automatically paid to the original creator
26. What risk does a buyer face when purchasing an NFT where the artwork is stored on a centralized server (not IPFS or on-chain)? → The artwork may disappear if the server shuts down, leaving an NFT pointing to nothing
27. What does 'diamond hands' mean in the NFT community? → Holding NFTs through market volatility and price drops without selling
28. What primarily determines the unique visual output of each piece minted in a generative art NFT collection? → A random seed derived from the minting transaction hash
29. What is 'curated' vs. 'open' on NFT marketplaces like SuperRare and Foundation? → Curated platforms invite and vet artists while open platforms allow anyone to mint
30. Which platform became the leading marketplace specifically for on-chain generative art NFTs? → Art Blocks