What is Mainnet and Testnet? Things to know about Mainnet & Testnet
- 1. What is Mainnet?
- 2. What is Testnet?
- 3. Why Mainnet and Testnet are important
- 3.1 Mainnet is proof of development
- 3.2 Building Reputation
- 4. What are the basic steps when doing Testnet?
- 4.1 Step 1: Prepare the wallet and receive the Testnet Faucet
- 4.2 Step 2: Experience different features
- 4.3 Step 3: Feedback comments
- 5. Top 5 mainnets today
- 5.1 Radix
- 5.2 Uniswap V3
- 5.3 Theta Mainnet 3.0
- 5.4 NEO Mainnet 3.0
- 5.5 Reef Finance
- 6. What is Mainnet Swap?
- 7. Does the mainnet make the token increase in price?
What are Mainnet and Testnet? These are two terms that perhaps newcomers to the cryptocurrency market have encountered a lot when participating in Blockchain projects. To better understand the Mainnet, and Testnet as well as the importance and influence on the Token price of these two networks, please follow BHO Network to follow the article below for more information!
1. What is Mainnet?
What is mainnet? This is a complete Blockchain version. When a community issues Mainnet, that community has its own Coin and Blockchain, not dependent on other platforms. Besides, the protocols that create Blockchain on a third platform and backed up data at the Mainnet are also called a Mainnet.
2. What is Testnet?
What is Testnet? This test network is developed to test the safety before implementing the Mainnet by testing most of the security and features of the Blockchain protocol. Otherwise, the protocol is an experimental network, so the data will not be officially saved. Developers can change or edit security errors, and failed transactions,... flexibly.
3. Why Mainnet and Testnet are important
What are Mainnet and Testnet? Why are these two networks important? Here are 2 reasons that BHO Network has compiled to help you answer this question.
3.1 Mainnet is proof of development
Mainnet is considered a special milestone marking the outstanding development of the Coin community. If a project has a strong Mainnet, the developer of that Blockchain chain has completely mastered the technology. Moreover, Coins can become an independent Token community and function like other Blockchain-based tokens.
Besides, the official network also allows users to experience all functions of Blockchain, and you can join the network anywhere. All arising risks cannot affect the operation inside the Blockchain chain.
3.2 Building Reputation
A Coin community that owns its Blockchain always has many advantages over the communities that are dependent. The mainnet is similar to a complete protocol that can perform all transactions. Users are linked with each other with the original Coin. If participating in the Mainnet, users can become a node by downloading the protocol's software.
Typically, Blockchain is built on open-source code, does not charge fees and encourages all users to participate. Most of the underlying code of the Blockchain is visible to the public. Therefore, the whole community is allowed to monitor and manage.
If a Coin community does not yet have or launches the Mainnet later than expected, the coin has no economic value yet. This project still depends on another Blockchain, so users can only participate in the test network.
Therefore, to be able to evaluate a Blockchain most objectively, investors need to consider whether that community already has a Mainnet and if not, how is the Testnet going?
Read more: What is FOMO and FUD syndrome? How to get over it?
4. What are the basic steps when doing Testnet?
Testnet is an important environment that helps developers find bugs and helps distribute developer tokens to people who want to participate in the project. To have a good test network, here, BHO Network will share with you 3 basic steps when doing Testnet.
4.1 Step 1: Prepare the wallet and receive the Testnet Faucet
First, the user needs to prepare the wallet to link to the Testnet and receive the Test Coin or Token through the Faucet Testnet. Depending on the official network, the projects will have different wallet requirements.
4.2 Step 2: Experience different features
Each community has different features for users to experience. Therefore, the test network of the projects will have different implementations depending on the area of the project.
- For AMM, users can perform Swap and provide liquidity at Testnet.
- For Lending, you can deposit money for a test loan or become a lender on Testnet.
4.3 Step 3: Feedback comments
At this step, users, when Testnet has to give feedback on errors, encountered, experiences when using and suggestions to build more features for the community. However, not every Testnet has a reward. Users need to keep the following in mind so as not to have too much hope in this network:
- Occasionally, the coin community will publicly Airdrop for Testnet participants.
- Some others may not be public but still have Airdrop plans.
- The rest of the project will not intend to Airdrop.
5. Top 5 mainnets today
What are the most used mainnets today? Understanding your questions, BHO Network has compiled the Top 5 prestigious and quality Mainnet right in the following content.
Radix is one of the most anticipated Mainnets. On April 28, 2021, this project released Betanet, conquering the Defi market with a value of up to a trillion USD. After this success, Radix plans to deploy its network for the Defi decentralized financial market by the end of 2021.
With more than 22 million USD, the project's development team has created an ecosystem. Application of advanced consensus algorithm Cerberus. This is considered the core part of the technology that Radix is pursuing. In addition, Radix will fully deploy special segments with limited capacity to meet expansion needs.
Radix uses the Cerberus algorithm and the novel Scrypto programming language, which is expected to create a highly competitive Defi environment. This Mainnet version is the stepping stone for this developer to develop a separate Coin. Blockchain on Radix can resist any attack targeting the mining process and improve common bottlenecks.
5.2 Uniswap V3
Among DEX decentralized exchanges, Uniswap is standing at the top of the table. In 2020, the number of users joining Uniswap was constantly increasing, and the total value of the above key assets exceeded the 1 USD mark.
It is expected that on 5/5/2021, Uniswap will launch Mainnet version V3. This is an upgraded version with loads of new and useful functions for users. After that, Uniswap will also release Optimism L2.
Mainnet version V3 is considered to be the birth of a centralized liquidity position, which is most expected by many investors. Because this version allows the liquidity provider to have all the control over the price range that the user wishes to offer. Moreover, Mainnet V3 also reduces transaction fees somewhat.
5.3 Theta Mainnet 3.0
Mainnet 3.0 version of Theta developer, users and investors are especially interested in 2 new features: staking and burning TFUEL tokens. However, the way Theta is implemented can increase the network cost to personally equal the supply of TFUEL.
Mainnet 3.0, in the second upgrade, has released the Elite Edge button system. These buttons will help users optimize mining operation time. This system is considered the next step in encryption and internet availability. Besides, users using these nodes will easily earn more TFUEL tokens during staking and improve operational performance.
5.4 NEO Mainnet 3.0
NEO developer has a strong Blockchain chain and has many good crypto projects. The goal of this project is to create a native oracle network to support intelligent operations. In particular, what investors are most interested in Mainnet 3.0 is the cooperation of two developers, NEO Foundation and NEO Global, creating a more complete and reliable service system and platform.
In particular, during the Mainnet 3.0 upgrade, NEO's house also focused on overcoming and improving the administration. This version allows a member to have a specific voice in initiating or voting on a certain topic. According to the plan, Mainnet version 3.0 will be released at the end of September 2021.
5.5 Reef Finance
Reef Finance builds its Blockchain network for next-generation DeFi decentralized software. According to the plan, Reef will launch an official network called Reef-Chain and go into operation from May 2021.
The attraction of this Mainnet has the Substrate platform. This is a platform with high security and provides high throughput, transaction costs are also significantly reduced. In addition, dApps will optionally aggregate liquidity from a variety of sources. This ecosystem also provides a lot of support for the system the community will implement.
6. What is Mainnet Swap?
Mainnet Swap is a process of converting Tokens on the underlying Blockchain to the main Blockchain of the protocol. Example: At first, Band Protocol worked on Ethereum's Blockchain, so Band's current Token is BAND - ERC20. However, in the future, the Band Protocol house will be running on its own Mainnet Blockchain, BandChain.
When Band Protocol's own platform is successful, Mainnet Swap Token process will take place and swap all BAND - ERC20 Tokens via Native BAND operating on Band Chain. The swap feature is to be converted at a specified rate, mainly 1:1. However, if the project has a high or low conversion rate of 1:1, it will affect the Token price.
Read more: What is Margin Trading? How to play Trade Margin for newbies
7. Does the mainnet make the token increase in price?
Mainnet is an essential network of Blockchain, but whether this network affects Token price or not, no one can be 100% sure. According to a quick statistic 2020, BHO Network can confirm the following assessment:
- During the new Mainnet, if you buy and hold Token for 31 days, you will have a ticket to reduce 40% - 60% of your account.
- If you buy Tokens before the mainnet release time of about 62 days, BHO Network guarantees that you will have a chance to increase your account by 50%-60%.
- The amount of gain you get will depend on the market cap (capitalization) of that Token. In other words, Tokens with a market cap of fewer than ten million dollars are the ones that offer the highest gains.
On the other hand, over time, the mainnet events don't matter anymore. Therefore, the Token price is not affected too much, even when the Mainnet is launched, the Coin community does not have the Token yet.
- What is stablecoin? Stablecoins classification in cryptocurrency
- What is Liquidity? Definition and types of Liquidity
Hopefully, in the above article, it will help you answer the question of “what are Mainnet and Testnet?”, as well as issues related to Mainnet Coin. In addition, BHO Network also hopes that you will have a better understanding of the impact of these two networks on the price of Tokens and the virtual currency market in general. If you still have any questions, don't forget to contact or regularly follow the useful readings of the main website!
Published on February 16, 2022
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