What Is A Cryptocurrency Mainnet Crypto Beginner’s Guide
Mainnet, testnet, internet, fishnet, skynet . . . what’s going on? You’re probably confused about what a mainnet is and what the purpose of it is. You might even be ready to throw your phone or computer because you can’t seem to wrap your head around the topic. No worries, I’ll fill you in the best I can on what you’re trying to find out so you can get on the right track.
An important start is to know the difference between a testnet and a mainnet. A testnet provides a model for blockchain projects. You could say that testnets are rough drafts. A mainnet would then be the final draft and be the tool that helps value the execution of cryptocurrency when it’s time for real life. Mainnets are the essays you worked so hard on and turned in to your teacher back in high school. They are the expensive jewelry you got your significant other for their birthday instead of the neck basket you were going to get them.
People who are and are not involved with cryptocurrency probably know that the values are hard to determine, but being aware of certain elements can help with picturing how projects might turn out. There are quite a few elements that you can learn about and be aware of in the realm of cryptocurrency, but let’s go ahead and dive a bit deeper into mainnets.
Defining A Mainnet
We’ll take this one step at a time since there is a lot to discuss. Follow along and you most likely won’t be confused afterwards. A mainnet is where digital currency transactions take place. There is value in mainnets, there is no value in testnets.
Try your best not to overcomplicate this. Mainnets are basically a part of every blockchain project. The definition of a blockchain (Straight from Merriam-Webster) is a digital database containing information (such as records of financial transactions) that can be simultaneously used and shared within a large decentralized, publicly accessible network; also : the technology used to create such a database. A mainnet . . . is a blockchain. Your brain should hopefully be piecing all of that together in a second. If not, read it again and continue on when it settles in. For the gamers out there, when you’re playing a beta, the things you do in it probably don’t matter, but when the full release of the game is out, that’s when things start to count.
Betas and full releases are associated with a lot of things so hopefully this a relatable enough reference to link the relationship between testnets and mainnets. Now that you understand this a bit more, let’s transition to investing and how mainnets can help you.
Investing With & Without Mainnets
There are some factors to consider when you’re investing in projects. You can invest in projects that haven’t yet released the mainnet or you can wait until the mainnet is out. Some projects don’t even have a testnet out. You may be wondering why you would even think about investing in a project with no mainnet or testnet if what I’ve been telling you about is the importance of mainnets. Investing before the mainnet is out can result in better value after the launch, but that’s not always going to be the case. Remember, a mainnet shows that the project is going somewhere. It can also have both good and bad effects on the cryptocurrency value.
This is the perfect time to tie in some of the references from earlier. The essay you turned in to your teacher back in high school wasn’t necessarily a guaranteed 100. That essay was an investment into your overall grade and there was potential for errors which could’ve effected your grade. That full release of that video game was a big piece of determining the direction the game was headed in.
The full release could’ve been not so great, but it could end up amazing. You can play with these examples to get a better understanding of this section. There are quite a few decisions to be made. You will need to use the information you gather from the project and your thinking cap to figure out what’s best for you.
A good thing to do is research mainnet launches. New mainnet launches will continue to be a thing until they slow down or stop for whatever reason. Some of the knowledge you gain from here and anywhere else about mainnets won’t be utilized if you don’t do your research. You can’t be there to invest before the mainnet launch if you don’t know when any launches are.
You won’t miss out on investing completely, but it would be ideal to keep up with projects so you can have a better understanding of what’s going on and what you should do. You want to be able to make the best investment possible. There is plenty of information out there about various details of the projects such as the dates of new mainnet launches, the performance of the projects, the benefits of making the investment, and more. Go do your research.
You made it to the end. Hopefully the references included in this article helped you instead of spin your head more. All of this information is a lot to digest, but you will be fine as long as you get familiar with the terminology and keep doing your research.
Use mainnets, testnets, and any other factors that help with predicting how projects will go to your advantage so you come out on top as much as possible. Make sure to make the best decision possible when trying to figure out if you should invest in a project with or without a mainnet. You could come out on top or on the bottom in some cases.
Keep up with mainnet launches so you can see where the project is going and determine what your next move is. Lastly, thank you for reading.