If you’re new to the world of cryptocurrency, you may have come across the term “mainnet” and wondered what it means. In this guide, we uncover the mainnet definition and explain why this concept is so important in the crypto industry.
What Is A Mainnet?
The mainnet is the live, functioning version of a blockchain network. It is the core infrastructure that allows a cryptocurrency to operate and enables users to transact and interact with it.
What You Need To Know About The Mainnet
Before launching the mainnet of a blockchain project, the team usually initiates fundraising through an Initial Coin Offering (ICO), Initial Exchange Offering (IEO), or by other means to garner support and resources. These funds are then utilized to develop prototypes of the blockchain network, which are tested during the testnet phase.
The developers can then perform bug fixes and, once they are confident that the system is stable and secure, they launch the mainnet, which is the official version of the network that is expected to be fully operational.
The launch of the mainnet is often accompanied by a lot of hype and excitement in the crypto community, as it marks a major step towards the realization of the project’s goals.
Once the mainnet is live, users can start transacting and interacting with cryptocurrency on the blockchain. This may include sending and receiving tokens, participating in staking or mining activities, and building decentralized applications (dApps) that run on the network.
The successful launch of a mainnet can also signal to investors and the broader market that a project is making progress and has the potential for long-term success, which can drive up the value of the cryptocurrency native to the blockchain in question.
On the other hand, a mainnet launch that is plagued by technical issues or other problems can have a negative impact on the project’s reputation and value. In some cases, it can even lead to the collapse of the project altogether.
