Blockchain

A decentralized, permanent, transparent and publicly accessible database in which crypto transactions are recorded chronologically and cannot be changed afterwards. It forms the backbone of various decentralized applications (DApps) such as NFT trading markets, decentralized finance (DeFi), games, etc.

Ethereum is a decentralized blockchain platform that builds a peer-to-peer network that securely executes and verifies application code called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are immutable, verifiable and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent and received by user-created Ethereum accounts. A sender must sign transactions and spend Ether, Ethereum"s native cryptocurrency, as a cost of processing transactions on the network.

Smart contracts are computer protocols that map, verify, and self-execute digital contracts. Blockchain technology is used, i.e. agreements such as “buyer” and “seller” are automatically transferred in lines of code. This means that there is no longer any need for additional human supervision and an additional written contract may become superfluous. Learn more via https://ethereum.org/en/smart-contracts

Technically, a token denotes a smart contract that works with a specific function within a blockchain platform. This turns a token into an asset or commodity which not only has a wide variety of functions but can also be traded like a cryptocurrency. Areas of application for tokens are, for example, decentralized exchanges or video games.

ERC-721 and ERC-1155 tokens are two standard forms of tokens that enable NFT minting and are the most widely used in Ethereum. The difference between the two forms is that ERC-721 tokens are exclusively non-fungible (non-interchangeable and non-divisible, i.e. cannot be broken down into smaller units), whereas ERC-1155 is the combination of fungible and non-fungible assets in one single smart contract.

ERC-721 tokens are used to create classic NFTs, while ERC-1155 is used for more advanced concepts such as digital currencies, tokenized real estate, digital art or in video game development.

A crypto wallet is a device, physical medium, program, or service that stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a crypto wallet also more often offers the possibility of encrypting and/or signing information, e.g. to execute a smart contract, a cryptocurrency transaction, for identification or to legally sign a 'document'.

The cryptocurrency or an NFT itself is not in the wallet, but is stored and managed decentrally in the blockchain.

MetaMask is a cryptocurrency software wallet used to interact with the Ethereum blockchain. It allows users to access it via a browser extension or a mobile app, which can then be used to interact with decentralized applications. MetaMask allows users to store and manage account keys, transfer transactions, send/receive Ethereum-based cryptocurrencies and tokens, and securely connect to decentralized applications via a compatible web browser or the mobile app's built-in browser.

NFT

A non-fungible token is an indivisible and incommutable, one-of-a-kind unit of data. Protected by blockchain and Smart Contract technology, each NFT can only be owned by one entity at a time. NFTs are widely used as proof of ownership of unique assets, such as fine art and other collectibles.

NFTs are distinguished from one another by metadata and unique identifiers like a barcode. The information that makes up the asset is known as metadata. Metadata allows users to buy or sell objects based on their metadata rather than the entire object.

Both NFTs and crypto tokens as a unit of payment of cryptocurrencies are based on the concept of blockchain and use similar innovations and standards. NFTs can be viewed as a subset of crypto culture and one almost always needs crypto tokens to trade NFTs.

However, the main difference can already be seen in the name: Crypto tokens are part of a currency, which means they only have an economic value and are fungible (exchangeable). After all, within a given cryptocurrency, it doesn"t matter which crypto token you own, because each has the same value: 1 $ETH is always 1 $ETH. NFTs, on the other hand, are not fungible. Each token is unique and thus has a value that goes far beyond economics.

The process of converting a traditional electronically created file (e.g. an image, text, video, piece of music, etc.) into an NFT is called minting. This adds the digital asset to a blockchain - typically Ethereum, but also Solana or Cardano - and cannot be changed, edited or deleted afterwards. Once the asset is minted and officially an NFT, it can be displayed in a wallet or traded on an NFT marketplace.

Yes, NFTs can be resold at any time. Selling an NFT on the secondary market (a transaction in which the original NFT creator is not necessarily involved) is relatively easy: the NFT is displayed on a marketplace and can then be purchased by interested parties. Gas fees and marketplace listing fees apply to the sale, which reduces the final revenue. Additionally, royalties may apply as set by the original NFT creator or gallery.

NFTs are stored on the blockchain. The smart contract address, which points to the location of the NFT (on the blockchain), is received after an NFT is purchased and held in a digital wallet. The content of the NFT"s smart contract is stored on the Internet via a file-sharing system. The associated metadata of the NFT is also stored in a cloud, and the asset itself can also be downloaded in a high-resolution version from some providers (e.g. Dinya).

Yes, anyone can download and view the image associated with an NFT basically for free (if the URL is known or if the image has been published on the web), but they do not own it and cannot get any value from it without also owning the NFT itself. It would be similar to looking at a work in a public museum or framing a photograph of a famous work of art and hanging it on the wall, but without owning the original. And many collectors also want as many people as possible to see and enjoy their artworks (which they verifiably only own), because that way they continue to increase in value.

In general, NFTs are safe to own. However, they could be compromised and as the market is currently booming, this also attracts many people with fraudulent intentions and leaves room for market manipulation or cyber attacks.

The safest place to keep NFTs is in a cold storage hardware wallet called a ledger. Hardware wallets are protected by a seed phrase, password or touch authentication and remain offline; meaning hackers cannot gain access, whereas an online software wallet like MetaMask can easily be compromised. It is important to understand that NFTs are not actually stored offline on a ledger, only the information required to access the wallet. All NFTs are stored in the blockchain, which guarantees the highest level of security due to its immutability.

Dinya

common:faq.dinya.about.text

Dinya is a joint project by photographer Marcel Gregory Stock and designer and tech entrepreneur Matthias Fenz. Driven by the vision of a completely new, self-contained community that brings together people who are creative, enthusiastic about art and fascinated by technology and opens up a world away from the traditional artistic mainstream, they created Dinya in 2022.

Dinya supports artists from all over the world in the creation and marketing of their NFT art and takes over the entire sales process. Dinya offers a comprehensive range of services, especially for artists without a technical background who have so far only worked analogously - from creative brainstorming to support in brainstorming and advice to complete digitization.

Dinya is based in Germany, but – as a digital company in the field of blockchain technology – globally active and thus offers its services to artists from almost every country in the world.

The decision on this depends on the creative intention of the artists and is entirely up to them. Works offered on Dinya can therefore be individual pieces or complete collections with an individual rarity value.

For the primary sale, Dinya works with the artists to determine a suitable pricing structure, but the final decision on the sales price is up to the artist. The future value in secondary sales is determined by the market and cannot be controlled by Dinya.

Royalties are payments that give artists a share of the revenue generated through the resale of their NFTs. So far, this has only been possible to a limited extent when selling physical works and excludes the artists from the sometimes very high sums that are achieved for their works on the secondary market.

Royalties are individually determined by Dinya together with the artists, anchored in the smart contract associated with the work and written into the blockchain during minting.

As well as. The decision as to whether a work or a collection will be auctioned off or sold at a fixed price is ultimately made by the artists.

Dinya is a digital art gallery. This means that basically everyone who creates art can also sell it at Dinya. However, Dinya is also a community, which means that it is our job to meet the highest possible standards of quality and innovation in order to accommodate collectors as well. For this reason, we make a very careful selection and reserve the right to reject artists and works that, in our opinion, do not fit Dinya.