The concept of cryptocurrencies has fascinated people all over the world for quite some time. Every person wants to take advantage of the digital currency asset class to earn huge returns. Consequently, there has been a surge in the number of investors signing up for initial coin offerings for cryptocurrencies.
People who want to understand how much potential a cryptocurrency has for the sake of investments have to first understand the mainnet launched by said project. A mainnet in a project signifies its objectives and its goals. However, ‘what is a mainnet?’ may be a question many newcomers in the crypto space have. Let’s get into the definition and also see a crypto mainnet list for additional knowledge, shall we?
What is a Mainnet?
‘What is a mainnet?’ is a question that can be answered only by understanding the concept through example. Suppose, your team leader asks you to release the final version of a game that you have been testing. This final version of the game will be available for the world to enjoy. Similarly, cryptocurrencies release a protocol after the testing phase to start validating and add transactions on the blockchain, which is open to the public. This protocol is usually generated by the coders in the initial stages of the cryptocurrency. So every cryptocurrency has this blockchain protocol, called mainnet, which allows the transfer of the crypto asset from the sender’s account to the recipient’s account.
The mainnet for very cryptocurrency functions to transfer crypto assets from sender to the recipient. It also allocates the transaction to a specific place in the blockchain. Mainnet is also used during initial coin offerings to attract investors through portraying the functionalities of a blockchain protocol. There is a complete crypto mainnet list for the readers ahead, that will suggest various functionalities of the protocol.
How Important is the Mainnet?
Now that we know ‘what is a mainnet?’, let’s find out exactly how integral it is to a blockchain project. When it comes to investors and the market trusting a cryptocurrency in its initial stages, the mainnet is the most vital part of it—launching the mainnet after the initial coin offering and fundraising means that the developers have completed all the tasks listed on the whitepaper. The mainnet offering also supports a price increase for the currency and acts as an initial step in the subsequent stages of upgradation to the cryptocurrency. Mainnet thus acts as something like the final form of the blockchain technology used by a cryptocurrency.
How Does Mainnet Work?
A cryptocurrency mainnet works with the help of the blockchain technology used in the development of a particular cryptocurrency. During the testnet phase, which is the time when the developers test run the blockchain protocol for any corrections to the code, another blockchain like Ethereum is used to check whether the cryptocurrency is good for transactions and passes through all the expectations or not.
A mainnet is completely independent and works using its own technology and protocol. The live cryptocurrency transfer on the mainnet makes it suitable for the crypto market and thus proves that the currency fulfills all its expectations. Mainnet upgradation also works as extra support for the currency, and pushes the prices up as it did with Bitcoin’s Lightning Network upgradation.
How Mainnet in Cryptocurrencies Affect Prices?
The mainnet of cryptocurrencies needs to be updated from time to time. For instance, the Bitcoin blockchain’s “Lightning Network” upgrade caused the currency’s prices to jump sharply. Every end user of a blockchain would want it to keep moving with the pace of their requirements. Mainnet upgradation means that the users get to enjoy new features such as the addition of more smart contracts or the integration of another protocol layer. Mainnet also requires a wallet system, which means the blockchain should be updated according to trading practices. A currency’s price can be increased by mainnet upgrades, but if they are delayed, it can also be negatively affected.
Crypto Mainnet List: Cryptocurrency Mainnets to Watch Out For
The blockchain technology is being developed with every passing day, and it’s only natural that currently active blockchains keep requiring multiple upgrades. The mainnet is important for such updates to be added and to scale a crypto asset. If the mainnet of a cryptocurrency is liked by the end users, it must perform well. Looking at various aspects of a cryptocurrency mainnet, we have compiled a crypto mainnet list you may want to look out for.
1. EOS Mainnet Launch
First up in our crypto mainnet list is the EOS mainnet. It is a cryptocurrency mainnet that is thought of as the Ethereum killer. The EO mainnet offers a very high transaction speed, i.e., in the range of millions per second. The EOS mainnet is also said to be fast, scalable, and more efficient than the cryptocurrency mainnet offered by Ethereum. It is a platform for the development of decentralized applications.
2. Nuls Mainnet
This cryptocurrency mainnet began testing a while back, and was even dubbed as a sleeping giant in the market. The Nuls mainnet aims to allow interaction between multiple blockchains for the end users’ benefit. It also helps to create a frictionless user experience while interacting with smart contracts and programming languages.
3. VeChain Mainnet
The VeChain mainnet was launched in June 2018, and since then, it has seen a significant rise in popularity amongst blockchain users. Internet of things (IoT) and blockchain integration have been in the talks for a long time. The VeChain cryptocurrency mainnet takes this forward and seeks to offer seamless integration between the two. It offers an ecosystem with a transparent flow of information amongst the whole blockchain.
4. Ontology Mainnet
Ontology mainnet helps to create a hassle-free environment for business owners. The primary goal of this mainnet is to connect businesses and consumers through blockchain technology. Without facing the issues of sharding, oracles, and lightning, users can easily verify and interact with the data flowing in the blockchain.
5. Ethereum Mainnet
We’ll be wrapping up our crypto mainnet list with the Ethereum one. The Ethereum mainnet is currently one of the biggest platforms for creating decentralized applications. It offers the adoption of blockchain to create another decentralized platform through smart contracts and automated protocols. The cryptocurrency for this cryptocurrency mainnet is called Ether, and currently, multiple decentralized projects are running on the Ethereum chain, such as Uniswap, Dark Forest, etc. The apps created on this mainnet have the feasibility to interoperate, as well as to stay interconnected, providing complete support to the overall blockchain network.
Should I Invest in a Project Without a Mainnet?
A cryptocurrency mainnet is definitely an important factor when it comes to investors taking interest in the asset. But a lot of times, currencies are able to raise money even without the testnet during the initial coin offering period. This is largely done with the help of potential use cases, technical concepts or a huge team backing the project. Then the team behind the cryptocurrency makes use of those funds to make the project useful and stand up to the terms it proposed during the initial coin offering.
So, if you are planning to invest in a project, then it is best that you first do complete research about it. Projects in their ICO phase have a lot of potential to give huge profits but it is the case only when the team stands up to their terms and delivers a globally accepted and useful token. Investing in a token without a cryptocurrency mainnet is otherwise full of risks, so it is better to invest in crypto with a mainnet already launched.
So now you know ‘what is a mainnet?’ in complete detail, and you also have a crypto mainnet list to find out more about. Essentially, the cryptocurrency mainnet provides a sustainable foundation for cryptos to enter the competitive market of decentralized finance. Upgradation to the mainnet also offers reliability from the cryptocurrency for users as they get to know the blockchain is constantly evolving.
In the long term and short term, a cryptocurrency mainnet affects the price of a crypto asset because of the reliability and usability factor of the blockchain. So, it can be concluded that the mainnet is one of the most important aspects of a blockchain that will help scale and promote the blockchain network amongst the end users.
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