What Is Mainnet Cryptocurrency’s Meaning? The Complete Guide For New Users

For those who are new to crypto, a query about mainnet crypto is common sense. What is the mainnet and how does it differ from the testnet. This post is prepared for you with all the necessary information to understand the most fundamental knowledge about this cryptocurrency term.

Here is the quick info about mainnet crypto if you are looking for Mainnet is the word used to indicate when a blockchain protocol is wholly established and implemented, meaning that Bitcoin transactions are being broadcasted, verified, and stored on a distributed ledger technology (blockchain). Keep reading to discover many other interesting facts about the mainnet. In this post, bePAY will try to clarify in the easiest way for you about mainnet cryptocurrency, what are mainnet means how mainnet works, and its importance. 

What Is Mainnet Cryptocurrency’s Meaning?

A mainnet meaning is a decentralized blockchain that operates its own network using its own technology and protocol. It is a live blockchain that utilizes its own cryptocurrency or tokens, as opposed to a testnet or projects running on top of other popular networks such as Ethereum.

Testnet enables programmers to troubleshoot and evaluate any new blockchain functionality. The primary distinction between testnets and mainnets is that the former is an ongoing blockchain project, whereas the latter is a fully developed blockchain. 

Several essential processes may occur prior to the main stage. These can include token sales, which provide funds for the development and testing of a product’s features. Upon successful implementation of this phase, the mainnet phase is often implemented. This would indicate that the blockchain is fully operational. Several blockchain-based firms have chosen to utilize their own coins tied to the Ethereum network.

Mainnet meaning

These ERC-20 coins are designed for use exclusively on Ethereum’s network. When the ICO concludes, the mainnet will be published. This is typically represented by a native token rather than an ERC-20 token. The subsequent phase is known as the mainnet swap.

This involves an exchange between ERC-20 tokens and new currency on the blockchain. Upon completion of the mainnet transfer, new coins are often destroyed. This is to ensure that just the new coins will be utilized, rather than the old ones.

>> Learn more about ERC-20 tokens and how does it work?

How Does Mainnet Work?

Programmers utilize a testnet to conduct trials and build a network that adheres to a project’s specifications, which is followed by a series of important procedures preceding the mainnet phase.

Typically, token sales raise the capital required to develop and test features before the blockchain goes live. The mainnet stage is normally launched once the testnet is fully functional, all problems have been fixed, and performance has been improved.

Numerous organizations choose to utilize their own coins tied to the Ethereum network. Suppose the mainnet was deployed with ERC-20 tokens, which are designed to be utilized exclusively on Ethereum’s platform. In that case, the company must perform an Initial Coin Offering (ICO) prior to deploying the mainnet.

How does mainnet work?

After an ICO concludes, the following step is typically a mainnet swap involving the exchange of ERC-20 tokens and new coins on the blockchain network. Old coins are destroyed at the conclusion of the operation to ensure that only the new ones are utilized. Launches of crypto-based mainnets will therefore necessitate a wallet system.

However, there is nothing permanent on the mainnet. Similar to a testnet, a mainnet can be modified anytime there is a change in the project’s deployment or when open-source groups feel the product requires upgrades or modifications.

>> If you are interested in information about an Initial Coin Offering (ICO). Here is an article for you.

Crypto Mainnet Use Cases 

Trust: The mainnet serves as evidence that the blockchain is operational. It extends an open invitation to the general public to join the network.

Use Cases: Prior to deploying a mainnet, a blockchain collaborates with application developers. Consequently, several of these applications are launched concurrently with the mainnet. This facilitates the integration of additional Dapps into the blockchain.

Credibility: After the introduction of a cryptocurrency’s mainnet, the majority of blockchains make the underlying code public, enhancing their credibility. The credibility of such open-source initiatives increases among users.

New possibilities: The public, the permissionless network promotes discovery.

Additional mainnet characteristics, such as security properties (anti-spam capabilities), are available.

Mainnet crypto use cases

Mainnet Vs Testnet

What Is Testnet?

The testnet is a blockchain or network that is parallel to the mainnet but is not completely established or operating at its maximum capacity. In general, a testnet is used by developers to test and troubleshoot all the functionalities of a blockchain to ensure that the system is secure and prepared for the mainnet launch.

Once all bugs and other issues have been resolved and the performance has been adjusted, the mainnet version of the blockchain is released. The testnet phase is crucial because it serves as a trial run before the real deal.

Imagine if you sent thousands of dollars worth of cryptocurrency before testing the blockchain’s functionality, and you lost all of your money. Clearly, engineers want to prevent this from ever occurring, which is why the testnet phase serves as a precaution. During the testnet phase, all transactions are essentially in demonstration mode.

Testnet explained

In addition, the prefixes of addresses on the mainnet differ from those on the testnet. Testnet addresses typically begin with 2, m, n, or tb1, whereas mainnet addresses begin with 1, 3, or bc1. For instance, Wikipedia contains a list of prefixes used in connection to the Bitcoin blockchain. Additionally, mainnet tokens can not be sent to the testnet, and vice versa. If you attempted to recover the tokens, they would be destroyed and unrecoverable.

Mainnet Vs Testnet

Before the mainnet is fully implemented, the team must raise funds through an Initial Coin Offering (ICO), an Initial Exchange Offering (IEO), an Initial DEX Offering (IDO), or an Initial Farm Offering (IFO), among other methods. Until a sufficient number of funds are raised to create a cryptocurrency. It is still in the prototype stage during a fundraising campaign. Occasionally, cryptocurrencies are in the testnet stage.

In the testnet phase, the developer performs blockchain development, testing, and issue fixes. Typically, these occurrences occur on other blockchain platforms, such as Ethereum (ERC-20), Binance Chain (BEP-2), Stellar, TRON (TRC-20), NEM, etc.

Mainnet vs Testnet explained

FAQs About Mainnet

What Occurs During The Mainnet Launch?

In general, a testnet is used by developers to test and troubleshoot all the functionalities of a blockchain to ensure that the system is secure and prepared for the mainnet launch. The blockchain’s mainnet is launched once all bugs and other issues have been resolved and performance has been optimized.

What Exactly Is Mainnet Swap?

When the testnet stage of development is complete, the team will launch the mainnet version of the blockchain, which will be an official launch on their own blockchain network as opposed to utilizing other blockchain platforms such as Ethereum (ERC-20) or Binance Chain (BEP-2). The role of the mainnet swap in this process. Since the testnet token operates on ERC-20 (or other blockchain platforms), it will be moved to the native blockchain network.

Following the procedure outlined above, the remaining testnet tokens will be destroyed after the mainnet swap is complete.

FAQs about mainnet cryptocurrency

Be Alert

The testnet coins are completely worthless and cannot be utilized in any real-world transactions. In contrast, actual coins (or mainnet coins) cannot be used on the testnet. These are the reasons why you must use a mainnet instead of a testnet when utilizing a new blockchain.

Closing Thoughts

Mainnets are crucial because they demonstrate or refute a project’s capacity to carry a blockchain project from conception to realization. When investing in cryptocurrencies, the initial release of a mainnet is a crucial technical factor to consider, despite the fact that it does not always provide a clear indication of a project’s eventual development.

As has been observed in numerous instances in the past, it is impossible to determine precisely what effect mainnets have on short-term price fluctuations. However, they do suggest the possibility of enhanced overall functionality.

However, other elements, such as the overall market trends and real-world acceptance, are just as significant, if not more so. Regardless of whether an initial mainnet version is deemed a success or not, it is essential to note that mainnets are always evolving through new versions, making cryptocurrency projects increasingly inventive and functional over time.