Ethearnal is a peer-to-peer freelance system where employers and freelancers can meet and enter into smart contracts. Here’s our review.
What is Ethearnal ERT?
Ethearnal, found online at Ethearnal.com, is a freelancing platform that aims to provide better protections for buyers and sellers in the freelancing industry.
The Ethearnal ERT whitepaper mentions that freelancers make up 35% of the American workforce. They collectively earned $1 trillion in 2016 alone. Some of the most popular freelancing gigs include writing and translation, tech jobs, mobile development, admin support, finance and legal, sales and marketing, design, and more.
Obviously, the global freelancing industry is a huge market. However, Ethearnal sees major problems with the industry – like high middleman fees and limited protections. That’s where Ethearnal sees an opportunity.
What Problems Does Ethearnal Seek to Solve?
Ethearnal believes that today’s freelancing industry has several major problems, including all of the following:
- Freelancers pay 10% to 30% fees to an intermediary
- Funds are not always immediately released by the intermediary
- There are limited ways for funds to be sent or withdrawn, especially in developing parts of the world
- Disputes are solved by single entities that cannot be objective by definition
How Does Ethearnal ERT Work?
Ethearnal aims to solve all of the above problems by creating a blockchain-based ecosystem with the following key features and functions:
- Ethearnal will use self-executing Ethereum smart contracts to set the responsibilities of both sides in code
- Ethearnal will provide a decentralized system of moderators who, based on game theory, receive compensation to resolve disputes if necessary, providing objective resolutions based on the idea that the majority is always right
- Ethearnal will tokenize reputation and give it monetary value, giving economic and reputational initiatives the same objective
- Ethearnal will align the economic initiatives of all parties involved so that they’re better off if they pursue the same outcome
- Freelancers can create listings presenting their services, then push them on the network using a web client
- On the back-end, Ethearnal uses Interplanetary File System (IPFS) to keep and distribute listings on a peer-to-peer basis with no servers needed
- The web client doesn’t need to be kept online – the offers just live in the cloud
- An employer can search Ethearnal to find the perfect person for the job; the employer and freelancer enter into a contract where a pre-arranged number of reputation tokens are staked from each side
- The smart contract has a pre-defined timeframe that will automatically release everything back to the original owners if none of the outcomes have been met
How Do Ethearnal Reputation Tokens (ERT) Work?
The Ethearnal ecosystem revolves around the use of Ethearnal Reputation Tokens, or ERT. These tokens can be purchased directly from the free market at the current market price.
Because of this system, Ethearnal aims to avoid the “chicken and the egg” problem, where new freelancers need reputation to get contracts, but they need contracts to get reputation. Ethearnal allows freelancers to effectively buy their initial reputation
Freelancers receive more ERT rewards by taking jobs on the network. They receive token rewards upon successful completion.
Both parties input ERT into a smart contract at the beginning of that transaction. If the objectives in that smart contract are not met by a certain period of time, then the smart contract will automatically release tokens back to the original users.
If the objectives are met in a certain period of time, and both parties agree on the successful execution, then 99% of the contract value in escrow goes to the freelancer. The remaining 1% is used to by reputation tokens on the free market (automatically by a smart contract) at market prices, then distribute them equally to the employer and freelancer.
This provides 0.5% of the value of the contract to each side in the form of ERT tokens, which serves two purposes. First, it gives each participation reputation proportional to the value of the project; and second, it creates demand for the ERT token.
If the objectives are not met, and the parties cannot agree on a resolution, then the moderator can step in. At the beginning, the Ethearnal team will participate in moderation.
Eventually, however, Ethearnal will create a system where moderators have a stake in choosing the best outcome. Moderators will be rewarded for choosing the side of the majority, for example. You can earn reputation tokens as a moderator. You stake tokens on a dispute. Then, if you participate in the winning decision, you can more than double your staked tokens.
The Ethearnal ERT ICO
The price of 1 ERT is set at 0.001 ETH. 1 ETH will give you 1,000 ERT.
The company has set a hard cap of $30 million worth of Ether.
75% of the total supply of tokens will be sold during the pre-sale and ICO. Only Ethereum will be accepted during the sale and pre-sale. 20% of the tokens will be kept for founders. These tokens will be locked in the ICO smart contract then released to founders when there is 0 ETH left in it. 5% of tokens will be kept for bounties and economic initiatives.
The Ethearnal whitepaper mentions that token holders can expect to earn profits from the platform: [Tokens will be sold to] people who would like to get a percentage of the profits of this project that has the potential to disrupt a $1T+ industry.” However, it’s not totally clear what kind of percentage ERT token holders can expect to earn. The platform charges a 0% to 1% fee, although that goes back to the system to support initiatives.
The total token supply has not yet been set. However, the total supply will be 1000 x the invested ETH.
Who’s Behind Ethearnal ERT?
Ethearnal was founded by two individuals who have 26 years of experience in various online businesses. The two have been involved with bitcoin since 2012 and Ethereum since its ICO in 2014.
The co-founders include Stanislav Uzunchev and Vladimir Vladimirov.
Ethearnal ERT ICO Conclusion
Ethearnal is a freelancing platform that aims to disrupt today’s freelancing ecosystem. Today, millions of people work as freelancers worldwide. The US workforce is estimated to consist of 35% freelancers. However, these freelancers lack a good, modern solution for connecting to clients. Today’s freelancing platforms charge fees of 10% to 30%. They also have centralized dispute resolution mechanisms – many of which favor the buyer over the seller.
That’s where Ethearnal sees an opportunity. Ethearnal uses Ethereum smart contracts and Ethearnal Reputation Tokens (ERT) to create a safe ecosystem for freelancers and clients. The platform has a built-in dispute resolution mechanism where moderators are incentivized to side with the majority.
To learn more about Ethearnal and how it works, visit online today at Ethearnal.com.