Mainnet

What Is Mainnet?

The phrase “mainnet” refers to when a blockchain protocol has been entirely created and implemented, which means that bitcoin transactions are published, validated, and stored on a distributed database (blockchain).

Deeper Definition

Every blockchain project must function on a blockchain ecosystem to carry out its operations and transfer its own digital currency.

Building a functioning blockchain network, also known as the mainnet, takes time for a new project. It has become standard procedure for project teams to operate a model on a “testnet” initially to test and showcase the features of a blockchain project to investors and consumers in a secure space.

To put it another way, a testnet is a functional prototype for a blockchain project. Still, a mainnet is a fully completed blockchain platform that allows users to make cryptocurrency transactions (or any other kind of digital data that is recorded on a distributed ledger).

Typically, before a blockchain project’s mainnet is released, the management will conduct an Initial Coin Offering (ICO), an Initial Exchange Offering (IEO), or any other way of raising cash and growing the program’s membership. Typically, the money raised is utilized to create blockchain system prototypes, which are subsequently tested during the testnet phase. The developers will eventually launch the mainnet version of the blockchain, which is (hopefully) completely installed and operational, after conducting bug repairs and relying on the effectiveness of the testnet.

Following the ICO’s completion and the project’s deployment, the organization may launch their mainnet, which will include their unique original coin (on a customized blockchain) instead of the previously provided ERC-20 token.

At this moment, the ERC-20 tokens will be traded for the currencies of the new network in a process called a mainnet swap. Following the mainnet exchange, all existing tokens are typically destroyed, leaving only the new coins to be utilized.

Mainnet Example

For example, Golem was founded in 2018 to provide a peer-to-peer (P2P) system for sharing computing resources, primarily for users needing more computing resources.

They released their mainnet, which allowed users to pay GNT to use more processing power.

Due to the rise in value throughout April’s optimistic market, it was conceivable for their worth to rise.