Cryptocurrency can be pretty complicated. The very many complicated concepts and new terms do not help. But that hasn’t stopped people from investing in these digital assets. That’s why we think we ought to break down some basic terms like mainnet in the context of cryptocurrency. We hope our endeavor brings you more clarity and ease in your investment journey.
What does a mainnet mean in the context of cryptocurrency?
A mainnet in the context of cryptocurrency is a fully operational and independent blockchain network. It allows users to transact and use the native token without relying on another network. Mainnets are the backbone of any blockchain project.
Mainnets also enable the execution of smart contracts and, in turn, the development of decentralized applications (dApps). In doing so, they are one of the key drivers behind the mainstream adoption of this technology and crypto. In this article, we will explore how a mainnet works and its impact on the broader crypto space.
How does a mainnet launch affect the price of the cryptocurrency?
Launching a mainnet is a significant milestone for any crypto project. It signifies the transition from a testnet or prototype to a live independent network. So the successful launch of a mainnet can increase investor confidence and attract more buyers. All of this ultimately means a surge in the cryptocurrency’s price.
Conversely, delays or technical issues in a mainnet launch can cause a drop in price as investors become wary of the project’s ability to deliver on its promises.
A mainnet launch is also of significance because it enables the deployment of smart contracts and the creation of dApps on the network. When a crypto project reaches the mainnet stage, it signals the project’s potential for growth.
Mainnets in the context of cryptocurrency projects
There are a host of mainnets in the cryptosphere, so it isn’t possible to list all of them. However, here’s a quick look at the mainnets of some prominent ones.
Mainnet of the EOS cryptocurrency
EOS is a blockchain project known for its high transaction speeds and low fees. Due to these features, it is a popular choice for the hosting of dApps and smart contracts.
The EOS project launched its mainnet in 2018 after a year-long Initial Coin Offering (ICO). Like all mainnets, the EOS one is a fully operational and independent blockchain network.
The mainnet launch was a significant milestone for the project, as it demonstrated its ability to deliver on its promises. As a result, it managed to attract many more users.
Mainnet of the Nuls cryptocurrency
Nuls is designed to be a modular and customizable blockchain platform. It launched its mainnet v.01 in 2018. The mainnet was activated in 2023.
The Nuls mainnet today is fully operational and independent. It also features a Proof-of-Credit (PoC) consensus mechanism, which is energy-efficient and secure. Demonstrating its commitment to deliver on its promises and widen its user base, the mainnet was a significant milestone for the project.
Mainnet of the VeChain cryptocurrency
VeChain is a blockchain project designed to provide supply chain management solutions. It enables businesses to track and verify the authenticity of their products more accurately.
The network launched its Thor mainnet in 2018. An integral point of focus with this mainnet was the exchange of VEN units for VET tokens. The mainnet was upgraded to feature a Proof-of-Authority (PoA) consensus mechanism in 2022. PoA is more energy-efficient and secure than the more common PoW mechanism.
Mainnet of the Ontology cryptocurrency
Ontology is another blockchain project that launched its mainnet in 2018. The Ontology mainnet also features a Proof-of-Stake (PoS) consensus mechanism. The mainnet included a series of complete distributed ledgers, smart contract systems, and cross-chain collaboration. Ontology is a high-speed, low-cost public blockchain bringing decentralized identity and data solutions to Web 3.0.
Ethereum: Mainnet launch and evolution
Ethereum is one of the most well-known blockchain projects. It is the second-largest crypto in terms of market cap. The network launched its mainnet in 2015. Development work, which began in 2014, was crowd-funded.
The Ethereum mainnet allows users to transact and use the native cryptocurrency, ETH. But it is more well-known for its smart contract functionality and the host of dApps it hosts. Until 2022, the Ethereum mainnet relied on the Proof-of-Work (PoW) consensus mechanism. This changed with its Merge upgrade, which introduced the PoS mechanism.
Conclusion
In conclusion, mainnets are a critical component of blockchain projects. The launch of a mainnet demonstrates the possibilities and potential of crypto projects. Mainnet usually leads to a surge in the token price.
FAQs
How does a mainnet differ from a testnet?
A mainnet is the live and fully functional blockchain network where actual transactions and operations occur. It’s the real deal, involving real assets and real consequences.
A testnet, on the other hand, is a simulation or sandbox environment. It allows developers to experiment, test new features, and identify issues without using real assets. It’s a safe space for trial and error before deploying on the mainnet.
Can different cryptocurrencies have their own mainnets?
Absolutely! Different cryptocurrencies often have their own dedicated mainnets. Each mainnet operates as an independent blockchain network for a specific cryptocurrency. These mainnets have their own rules, protocols, and infrastructure, enabling transactions, smart contracts, and other functionalities unique to that cryptocurrency’s ecosystem.
What is the significance of a mainnet launch?
A mainnet launch is a pivotal moment in a cryptocurrency’s development. It signifies the transition from a testing phase to a fully functional, live blockchain network. It allows real transactions, showcasing the cryptocurrency’s capabilities, security, and utility. A successful mainnet launch boosts investor and user confidence, supporting adoption and potentially influencing the cryptocurrency’s value and future growth.
What are the steps involved in a mainnet launch?
Mainnet launch involves developing, testing, node setup, token migration, security audits, and announcing the start of a functional blockchain network, enabling real transactions and growth.
How many crypto mainnets are there?
Currently, there are several crypto mainnets in existence. The exact number may vary depending on how one defines a “mainnet.” The most famous examples of cryptos that have their own mainnets are Bitcoin, Ethereum, and the Binance Smart Chain.
What happens when a cryptocurrency launches its mainnet?
Launching a mainnet is a significant milestone for a cryptocurrency project. It means that the project’s blockchain has reached a level of maturity and stability that lets it function independently—meaning without relying on another blockchain. When a crypto project launches its mainnet, users can start using it for its intended purpose. Such launches increase the project’s visibility and credibility.
