Understanding Blockchain Changes: Testnets and Mainnets
For most people curious about cryptocurrency, “Bitcoin” is still the word that is most closely associated with the space. However, over the last few years, “blockchain” has become the catch-all term for the social and economic changes that decentralized ledger technology can bring to the world.
Blockchain’s potential, power, and scope are implied by the way the term is used in the media, with some outlets insisting on always capitalizing the word. Such an approach makes it seem like there is just THE ONE, the immutable blockchain. In fact, there are many different blockchains, with new ones being created every day.
While Bitcoin was the first blockchain used as a cryptographic decentralized ledger for tracking digital currency transactions, many others have emerged in the past decade: Ethereum, Litecoin, Ripple, EOS and Bitcoin Cash, to name just a few. Developers can apply blockchain technology to a multitude of purposes, from new cryptocurrencies to medical data records to logistic tracking.
Blockchains can be modified and split, they may or may not share standards and protocols, they can be “live” or in a testing stage. Understanding the ways blockchains differ and transform over time is important for feeling confident in the crypto ecosystem.
Testnets
A testnet is what it sounds like: a sandbox blockchain environment where developers can submit test code and explore the possibilities of new projects. The testnet allows innovation without the chance of damage to the main blockchain, which is especially important when users’ funds and real-world assets are concerned.
The tokens of a testnet are not the “real” currency, and can be obtained at no cost for the purposes of testing transactions. Most importantly, in Ethereum’s case, the gas payment for testnet computations does not cost any “real” money, giving developers more room for experimenting.
As you would expect, projects start by building blockchain testnets before (hopefully) moving to fully functional mainnets. But even after the mainnet is launched, testnets remain useful for developers working to improve the network.
The most popular public Ethereum testnets are Ropsten (abbreviated ROP) and Goerli (GTH). Ropsten and Goerli Ether is not the actual ETH — so if you’re new to crypto, you can use it to practice moving funds before risking real money or spending gas fees.
If you’d like to try using the Ropsten testnet from your phone, the MEWconnect app gives users two wallet addresses — Ethereum and Ropsten. Feel free to experiment with ROP before diving into real ETH transactions, but be careful not to send real ETH to the Ropsten network address.
Mainnets
A mainnet is a project’s main blockchain network, openly available to the public. It’s the network that actually supports the project’s functionality and delivers value to users. Ethereum’s mainnet enables users to purchase and send ETH and tokens, create and interact with smart contracts, and build and use decentralized applications. The efficacy of the mainnet defines the project’s viability and market value in the cryptocurrency space.
Although MEW is an Ether wallet, some other mainnets can be accessed in MEW’s web interface — as long as they are compatible with Ethereum through the use of the same API standards. Examples of these networks include ETC, RSK and TOMO.
Usually, these compatible mainnets are forks of the Ethereum blockchain. They can be selected under the Networks section in the wallet interface to view balances and send transactions.
From ERC20 to Mainnet Launch
A special case of blockchain change, and a highly relevant one for Ethereum token investors, is when projects that had previously released ERC20 tokens move to their own mainnet. What does this mean?
Building a blockchain is a long process that requires a significant investment of resources, so when most blockchain projects start out, they issue tokens on an existing network like Ethereum, EOS, NEO or Tron.
The protocol for most Ethereum tokens is called ERC20 which stands for Ethereum Request for Comment 20, meaning that it was the 20th major improvement proposal by one of the developers contributing to the Ethereum code.
When the mainnet is launched, the ERC20 tokens need to be swapped for the official coins on the new blockchain. Once the swap period is over, the ERC20 tokens will no longer hold any value!
That’s why it is essential for crypto users to be aware of what’s going on with the projects where they invested — read the white papers, consult the road map, follow news on social media and check back with support.
In order to participate in the move to mainnnet, an investor needs to send ERC20 tokens to an exchange that will perform the swap, and then send the new coins to a compatible wallet. It’s important to keep in mind that the exchange may have distinct addresses for the old ERC20 tokens and the new coins, as it’s not possible to send ERC20 tokens from the Ethereum blockchain directly to a new blockchain mainnet (or a mainnet address on an exchange).
Finally, different blockchains can have different protocols and mechanisms for sending transactions. For example, the Stellar blockchain requires the use of a memo to identify your funds when they are sent to the exchange, but there is no such requirement on Ethereum. On the other hand, Ethereum takes a miners’ gas fee for any transaction, payable only in ETH. If you are unprepared for specific blockchain procedures, crypto transactions can become quite frustrating.
Blockchain savvy
Just as with any new skill or pursuit, doing your research and being prepared will go a long way to preventing losses and increasing safety.
- Before investing in blockchain projects, check whether they are in token, testnet or mainnet stage and what their future plans are.
- If you decide to invest, keep up with project updates. The principles of decentralization prevent many projects from collecting data about users or contacting users directly, so you must follow the news on your own initiative. Be prepared to swap tokens for mainnet coins — follow the directions provided by the project team.
- For major cryptocurrencies like Bitcoin, Ether, Bitcoin Cash, Litecoin and others, be aware of any upcoming forks and whether the community is divided.
- Pay close attention to where you are sending assets and which network is selected when sending transactions. Avoid sending tokens or currencies to incompatible blockchains — your funds will be lost!
Wishing you safe and happy crypto adventures!
#teamMEW
