The live version of a protocol that operates with actual currency is commonly referred to as “Mainnet.” A cryptocurrency is typically regarded as “live” once the first block of the Mainnet, also known as the genesis block, is successfully mined.

A blockchain project enters the “mainnet” after it has been deployed by its developers and is finished. Cryptocurrency transactions are actively processed on the mainnet, assuring their broadcast, verification, and recording.

It is critical to ascertain whether a new blockchain operates on the mainnet or a “testnet” before engaging with it. A blockchain network that is either not yet operational or not operating to its full potential is referred to as a testnet. Programmers and developers generally use testnets as a pre-launch environment to test and troubleshoot various features and parts of the blockchain before getting it ready for the mainnet launch.

It is crucial to comprehend that a testnet should only be used to transfer functioning prototypes rather than actual money. The mainnet, in contrast, is a fully functional blockchain platform that can support bitcoin transactions, run smart contracts, and handle other data that is unique to the blockchain protocol.

You might come across a testnet if the company launches an Initial Coin Offering (ICO), an Initial Exchange Offering (IEO), or employs any other method of funding throughout the project’s fundraising and community-building phases. To demonstrate the project’s seriousness and raise further funds for building the prototype into a reliable blockchain network, testnets may now be made available to users. Before moving on to the mainnet, these testnets are put through additional testing to assure stability.

It’s crucial to exercise patience if you find yourself using a testnet while you wait for the mainnet while the development team fixes errors and improves the testnet’s functionality. The group will eventually introduce the blockchain’s official mainnet version.

In most situations, any previously issued ERC-20 tokens utilised during the crowdsale and fundraising will be replaced by the native coin of a proprietary blockchain. ERC-20 tokens are often swapped for the new mainnet coins during this transition, a procedure known as a “mainnet swap.” To prevent misunderstanding and guarantee that investors and users only use the new currency, the testnet coins are often destroyed during this event.