Mainnet

What is Mainnet?

A mainnet is an independent, fully functional blockchain that operates on its own network with its own technology & protocol. Unlike testnet or projects running on top of other networks like Ethereum, a mainnet uses its own tokens or cryptocurrencies.

Mainnet also performs the function of transferring a cryptocurrency from a sender to a receiver. Thus, Mainnet can be understood as the main network through which actual transactions occur on a distributed ledger. In contrast, a testnet is where Decentralized applications (DApps) and EDCCs get tested and developed.

Programmers and developers use testnet to experiment and troubleshoot any new features on a blockchain. To sum up, we can say that the main difference between a testnet and a mainnet is that while the testnet is a blockchain project that is still in progress, the latter involves a fully developed blockchain.

Importance of Mainnet in crypto projects:

Before investing in an ICO, an investor must ensure a blockchain project has a mainnet. The sign of a mainnet or a testnet indicates how serious a project is, as the two characteristics impact the price of crypto somehow or the other. Mainnet is a protocol designed mainly to execute, verify and distribute blockchain transactions.

In cryptocurrencies, Mainnet is the final product in blockchain projects that allows sending and receiving digital currencies. Mainnets also undergo updations from time to time depending on the requirements of the project name.

Launching a new crypto mainnet:

Before launching a mainnet, a few important steps need to be followed. These may include a token sale and funding a product to produce and test features. Once this stage is successfully executed, the mainnet phase is generally rolled out. This would indicate that the blockchain is all set and running.
Blockchain startups usually use their own tokens pegged to the Ethereum network during an ICO. These are basically ERC-20 tokens that are aimed to be used exclusively on Ethereum’s platform. Once the ICO is complete, the mainnet is released.

Rather than the ERC-20, the mainnet uses its own native token. The subsequent stage involved in the process is mainnet swap. This includes a swap between the ERC-20 tokens in exchange for the new coins on the blockchain. Once the mainnet swap is done, the old coins are mostly destroyed to ensure that only new coins are used.

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Disclaimer

Priyanka likes writing research-based, informative articles for investors, especially those who are new in the market. She holds MBA and is currently dwelling into the financial market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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