A Mainnet is one of the necessary milestones when trying to evaluate the progress of a blockchain project. It provides a perspective for investors especially when looking to invest in an initial offering, as the price of a token would be difficult to predict with the volatility. By providing a clearer real-life value metric of a cryptocurrency, speculations, and hype is cut down.
Mainnet is simply short for “main network” and is the live version of the blockchain where transactions and operations are executed and recorded. It is the fully operational and functional aspect of the blockchain which allows for interaction, validating of transaction blocks, carrying out transfer requests, and at the same time enabling transparency. The Mainnet is a final and ready product of the Testnet, which describes when a blockchain project is not fully optimized and has not yet reached its full capacity. Testnets provide a space for developers to troubleshoot and implement all the features of a blockchain project. In other words, the Testnet of a blockchain project is merely a prototype. The Mainnet term defines a ready and fully deployed blockchain protocol that allows for efficient cryptocurrency transactions and an optimize digital ledger.
As the primary structure of any blockchain protocol, successfully launching or even upgrading a Mainnet
could automatically improve its environment. This is because it would attract investors who would critically analyze as well as speculate about the success of the protocol leading to more attention and attracting more buyers for the project.
How does this work?
While testing and troubleshooting at a Testnet level before launching a Mainnet, the developing team would set up an Initial Coin Offering (ICO) or Initial Exchange Offering (IEO), both of which are important events to help grow the project community and bring in more funds. Once the prototype is completed and the team is confident to implement a final version which is the Mainnet, there is a boost in investor confidence as the project would have its native coin. The native coin would be swapped for other ERC-20 tokens, signifying a final and completely deployed blockchain project.
The Mainnet can be upgraded, making significant changes or improvements to the blockchain protocol.
There could be Protocol enhancements, aimed at improving the functionality, scalability, and security of the blockchain.
Improvements can also be made to the governance system of the blockchain by introducing more features
and optimizing other aspects of the network. This is to improve or completely change the network consensus mechanism. For example, a network can choose to move from a Proof of Work(PoW) system to a Proof of Stake (PoS) consensus system. Which is what we saw with Ethereum a few months ago.
There could also be a form of permanent divergence from the existing blockchain called a “Hard Fork”, which is essentially a disagreement of the protocol algorithm. While planned Hard Forks lead to a smooth transition to a new version of the protocol, it could also result from contentions within the community and can lead to the outcome of separate chains.
KAVA, the native token of a Layer 1 blockchain known as Kava has gained up to 40% after its network underwent a major Mainnet upgrade. The KAVA Mainnet upgrade was to ensure a faster transaction validation speed and offer greater security, as it intends to go live on May 17 according to Coindesk. The network looks to also launch a new bridge that would enable the transfer of crypto assets from Cosmos to protocols across Kava. This is a win for the protocol as last it experienced only a 10% participation vote n by token holders to terminate several grants and programs by the project by the year’s end. The increase in the value of the project after an upgrade to its Mainnet is an illustration of how the essence of a token’s Mainnet can affect its price. $KAVA is currently at a trading volume of $473 million in market capitalization and $38 million in daily 24hr trade volume.
Written By Anthonymark
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