Ethernity Chain is a marketplace for authenticated non-fungible tokens, or ANFTs, for digital art.
Ethernity is built on the Ethereum network and aims to create the largest authenticated ANFT library in the world — while simultaneously rewarding creators and raising funds for charitable causes and organizations.
The platform is community-oriented and allows holders of its token, ERN, to farm rare ANFTs via a unique decentralized finance (DeFi) application. ERN holders may also stake their tokens and vote on Ethernity Chain governance proposals.
Ethernity ANFTs are frequently traded on the NFT marketplace OpenSea, where there is an official account named “EthernityChain.”
What are NFTs?
Before getting deeper into what Ethernity is, it is important to first understand non-fungible tokens, commonly called NFTs.
NFTs are cryptographically unique coins, meaning that each token on a blockchain is identifiable and cannot be divided into smaller pieces. For example, every coin on the Bitcoin blockchain is the same as any other coin, and BTC may be divided into units as small as a single one hundred millionth of a whole coin. NFTs, on the other hand, represent a whole unit that may not be divided into smaller units.
The non-fungible nature of NFTs makes them perfect for digital artwork or digital collectibles, which have only recently entered the mainstream consciousness. NBA Top Shot — an officially licensed digital collectible platform for the National Basketball Association — allows users to own and trade “moments” in the form of NFTs on the Flow blockchain. Artists like Grimes have created and auctioned NFT digital artwork, as have various other musical artists. The skyrocketing popularity of non-fungible tokens has also sparked strong interest from the likes of Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and Dallas Mavericks owner Mark Cuban.
Unfortunately, whenever a new trend goes fully mainstream, there will always be scammers and wrongdoers looking to exploit it. In the case of non-fungible tokens, individuals may accidentally buy counterfeit tokens produced by illegitimate accounts. This is where Ethernity comes in. The relatively new platform aims to ensure that buyers are always receiving a legitimate NFT that has been appropriately authenticated by blockchain technology — rebranding the acronym to ANFT (authenticated non-fungible tokens) in the process.
How does Ethernity work?
Ethernity Chain produces limited edition non-fungible tokens that are authenticated on the blockchain. However, the mechanics behind Ethernity are not particularly complex:
- First, an artist produces a work of digital art.
- The digital artwork then gets authenticated on Ethernity, which is displayed via an icon.
- An auction is then conducted, at which a limited number of the artwork is purchased.
- The accounts who win the auction mint the non-fungible tokens.
- A defined portion of the proceeds from the auction — as well as future sales — goes to charities.
- Because the owner of the digital artwork owns the ANFT on the blockchain, they are able to put the work up for auction themselves.
Ethernity operates on a for-profit model in order to continue to develop and expand its services. However, its focus is very firmly on supporting charitable causes. Users may donate up to 90% of their funds used to purchase a piece of digital art to charity, while the remaining 10% is divided between marketplace/gas fees and Ethernity.
What is Ethernity Chain Token, and how does ERN work?
Ethernity Chain’s token was launched via an initial decentralized exchange offering on March 8, 2021. The IDO took place on the Polkastarter platform and sold out in a matter of minutes, raising $275,000 in the process.
Ethernity Chain Token carries the ticker ERN on cryptocurrency exchanges and is used to provide liquidity to ERN pools, where holders may farm unique authenticated non-fungible tokens. ANFTs that are earned via farming may be traded for profit and charity.
ERN is also a governance token, as it allows users to vote on proposals in a decentralized fashion that may fundamentally change the platform.
ERN is currently ranked outside of the top 250 coins or tokens by market capitalization. Its circulating supply is currently less than 4.5 million — which is a far cry from its maximum supply of 30 million tokens. This means that, while its market capitalization is only a relatively small $165 million, its theoretical fully diluted market cap is above $1.1 billion.
Who created Ethernity?
Ethernity Chain is the brainchild of environmentalist and Bitcoin investor Nick Rose, a Global Wildlife Conservation executive.
Currently, details about the team behind Ethernity are not readily available on the project’s official website.
Community Drops on Ethernity
Shortly after its launch in March 2021, Ethernity commenced its first “Community Drop” with Australian-born graphic artist BossLogic — known for his work with Disney and Marvel Studios — called the Ethernity Chain x BossLogic Collection. This collection of digital artwork features 2501 authenticated non-fungible tokens.
It is expected that more high-profile Community Drops featuring high-profile digital artists will take place as time progresses.
The Ethernity Boss Logic Collection #1 on OpenSea. Source: OpenSea
Non-fungible tokens have truly gone mainstream, and you’d be hard-pressed to find someone today that hasn’t, at least, heard the acronym “NFT” used on TV or in conversation. Because of this rapid growth, the need for NFT authentication has presented itself — and Ethernity is a first-mover on this front.
Though Ethernity is a newly launched project — and details about its team aren’t as readily available as many other crypto-related projects — partnerships with high-profile artists may go a long way towards further legitimizing the platform.
Some might have skepticism about the need for a token — since NFT marketplace OpenSea, for example, does not have its own token — but Ethernity’s ERN token allows holders to participate in the decentralized governance of the platform while staking to mint rare ANFTs.
Overall, the NFT space is positioned to become hypercompetitive in 2021 after reaching deep into the mainstream consciousness. Ethernity is positioned to become a solidified leader in the ANFT space but will need to keep up the momentum through high-profile partnerships with leading digital artists.