Even though cryptocurrency values have thus far been difficult to predict, there are a few key components of determining a project's success. One of the biggest factors is technology. While investors don't necessarily have to know about the technical details of a project, it's still important to see some progress in this area. Testnets are able to show a sort of working prototype for blockchain projects. However, mainnets are an even more important aspect of valuing a cryptocurrency's real-world implementation. In this article, we'll discuss everything you should know about mainnets and analyze two of the most recent ones to launch.

What is a Mainnet?

Essentially, every blockchain project has a mainnet. So what is it? Simply put, a mainnet is a blockchain that actually carries out the functionality of transferring digital currency from senders to recipients. This is different from a testnet, which basically is just a test of such transaction functionality. The easiest way to think about it is that testnets are the prototypes that demonstrate the potential capabilities of a project. Mainnets are the actual “end product”, which is available for the public to use. However, just like testnets or code frameworks, mainnets can be changed whenever project teams or cryptocurrency open-source communities decide there is a need for updates and/or revisions.

Should I Invest in a Project Without a Mainnet?

While it might be ideal that all projects already have a mainnet released at the time of ICO, this is rarely the case. In fact, a lot of projects don't even have a testnet prepared during the ICO period. In terms of fundraising, tons of blockchain projects have been able to raise sufficient capital based on potential use cases, technical concepts, and other factors like the team behind the project and partnerships. Oftentimes, teams use a lot of the funds from their ICOs towards building out the testnet and mainnet versions of their projects.