What is Mainnet & Testnet? 03 Basic Steps When Making Testnet
What is Mainnet? What is Testnet? Learn about their importance and influence on coin prices and 3 steps to testnet right here!
Surely, newcomers to the cryptocurrency market always wonder about two terms – Mainnet and Testnet when investing in a certain blockchain project.
In this article, I will briefly explain these two terms. Also included is a small study on the influence of the Mainnet on the token price. Let’s find out with idolmeta.net!
What is Mainnet?
Mainnet (also known as the official network) is a term used to describe the fact that the data of the blockchain protocol has officially been recorded on the blockchain itself.
This means that, when a project goes on to mainnet, that project already has its own coin and blockchain, and no longer depends on another blockchain.
In addition, the protocols are built on the third platform blockchain, and they officially back up the data on the Mainnet of that platform Blockchain, also known as the Mainnet.
The best example is Chainlink (LINK): ChainLink implements Mainnet on Ethereum’s platform, that is, after mainnet, ChainLink protocol’s data will be recorded on Ethereum’s blockchain.
As you all know, the data recorded on the blockchain cannot be changed. Therefore, in order to avoid errors, bugs, bugs, etc., blockchain protocols need to be tested first on a network called Testnet.
What is Testnet?
Testnet (or test network) is an environment for project developers to test all features, security of blockchain protocol is safe before proceeding to Mainnet.
Because the Testnet is a testing phase, the data is not officially saved on the blockchain, so it can be changed or edited flexibly if there are security bugs, failed transactions, .. .
Importance of Testnet and Mainnet
These are two extremely important steps in the final stage of the project.
The testnet is a way for developers or the community to try out a product and give feedback on their experience, contribute to developing additional features, or report bugs.
After the important bugs were fixed, that was when the Mainnet was born, which means that the project was officially launched for the community to use.
Starting around the second half of 2020, Testnet also plays another interesting role
That is to help the project find users who are really interested in the product, then airdrop, send them a reward (usually project tokens) for finding a bug or sending valuable feedback.
03 basic steps when doing Testnet
The testnet is currently acting as an arrow that hits two targets, as it can both encourage users to find bugs and distribute their tokens to those who are likely to really want to go with the team.
Step 1: Prepare wallet and receive faucet testnet
In this step, you need a wallet to connect to the testnet and receive the project’s test coin/token through the testnet faucet.
Depending on the main networks, each project will require different wallets, such as BEP20 wallet on BSC network, SPL wallet on SPL network, etc.
Step 2: Experience the features
Each project will have different features for you to experience. Therefore, the testnet of the projects will also have different ways of doing it depending on the field of that project:
- If it is an AMM, users can Swap, providing liquidity on the Testnet.
- If it is a Lending, users can deposit money into a test loan, or become a lender on Testnet.
Step 3: Give feedback
This is a common task of all projects for users when testingnet, including: Feedback experience during use, encountered errors or suggestions to build more features for the team.
One thing to keep in mind is that not all Testnets offer bonuses:
- Sometimes the project will publicly Airdrop to Testnet participants.
- Others will not go public but still have Airdrop plans.
- The rest will be no Airdrop intended.
So don’t expect too much when doing Testnet because it will sometimes disappoint us.
What is Mainnet Swap?
Mainnet Swap is the process of converting tokens from the original platform blockchain to the protocol’s official blockchain.
Originally, Band Protocol ran on the Ethereum blockchain, so the current token of Band is BAND-ERC20.
However, Band Protocol will implement their own blockchain mainnet BandChain in the future.
When Band Chain Mainnet is successful, Mainnet Swap Token process will take place, to swap all BAND – ERC20 tokens to Native BAND running on Band Chain.
The essence of the swap is to convert at a certain rate, usually 1:1. If the project converts higher or lower than this rate, it will affect the token price.
Does the mainnet make tokens go up in price?
As you well know, Mainnet is an important event of any blockchain. However, whether the Mainnet affects the token price or not, no one really dares to 100% guarantee.
A quick statistic done at the beginning of 2020 by idolmeta.net shows that:
- If you buy right at the time of Mainnet release and hold for 31 days, you will have a ticket to reduce 40% – 60% of your account.
- Conversely, if you buy before the scheduled time of Mainnet about 62 days. You have a chance to increase 50% – 90% of your account.
In particular, it can be seen that:
- The amount of profit gained will depend on the market cap of that token.
- Specifically, tokens with a capitalization of less than 10 million USD are the ones that bring the highest gains.
Research on the following profit and loss after mainnet project
However, the mainnet event of the projects is gradually no longer so important, so the token price does not have too much influence. Even when it went to Mainnet, the project didn’t have a token.
At the end of the article, I hope you guys understand more about the Mainnet, Testnet and its effect on the price of the token, so that you can make a suitable investment decision for yourself.
If you have thoughts and opinions on this issue, you can comment below the article. I and the idolmeta.net team will discuss more with you.