What is Mainnet?
Let's find out Mainnet meaning, definition in crypto, what is Mainnet, and all other detailed facts.
Mainnet is a fully functional and developed blockchain that has its own technology, protocols, and digital assets. It is the opposite of a testnet, which is a term used to describe a blockchain in progress. Programmers and developers use testnet to test and troubleshoot all aspects and functionalities of a blockchain network before declaring it secure and ready for the mainnet launch.
Typically, before a mainnet of a blockchain project is launched, the company launches an Initial Exchange Offering (IEO), an Initial Coin Offering (ICO), or any other way of raising funds and growing the project's community. Essentially, the raised money is utilized to create blockchain network prototypes, which are tested during the testnet phase.
Then, after conducting bug fixes and analyzing the performance of the testnet, the team subsequently launches the mainnet version of the blockchain, which is completely installed and functional.
Several blockchain startups in 2017 decided to create ICO crowdfunding events. They ended up issuing their own ERC-20 tokens (on the Ethereum network) that were later handed out to investors based on their level of contribution to the ICO stage. After this stage, mainnets were released and the ERC-20 tokens were swapped with the tokens of new blockchains. This process is called a mainnet swap. After the swap, the remaining tokens are usually destroyed and only the new ones are left.