What is a mainnet?

A mainnet or main network is nothing more than the space where the main network of a cryptocurrency is implemented and works. This network is what allows us to communicate the different nodes that are part of the network, which are responsible for storing all the information of the blockchain.

AIn addition, at the same time, it is also responsible for communicating with each other to the miners (in case of PoW) or validators (in case of PoS). In the same way, it also has the function of providing the necessary space, resources and technology so that the operations of said blockchain and cryptocurrency are carried out on it, which includes transactions, operations or events related to smarts contracts within the possibilities of said network.

In this way, mainnets are a vital part in the development of a blockchain and a cryptocurrency, since they provide a clear value for cryptocurrencies and the related blockchain, since it becomes the space for the implementation of the real world technology.

How important is a mainnet?

The importance of a mainnet lies mainly in being the space where blockchain technology and its cryptocurrency are developed in an environment of real use. To understand this in a much clearer way, imagine the following:

Bitcoin has three networks that are Mainnet (the main network where the BTC cryptocurrency with a recognizable market value moves), Testent and Signet (these two are test networks, each with its own worthless coin). Although you can perform operations on all of them (send and receive cryptocurrencies), only the technology that reaches the mainnet is considered a useful technology in real life and within the reach of end users and, therefore, only the technology on the mainnet can increase (or decrease) the value of Bitcoin as a technology and also as a value.

A good example of this can be seen in Ethereum, where its current mainnet (ETH 1.0) will be strongly affected, both technologically and in terms of value, with the final arrival of ETH 2.0. After all, ETH 2.0 will be a major update to the Ethereum mainnet that will take it into the future within its developers' goals. Of course, these changes have gone through a long development process (ETH 2.0, has been in development since 2018), changes that we can already see in the Ethereum testnet.

Characteristics of a mainnet

1. This network is where the activity takes place and where the operations that have weight on the market value of the cryptocurrency that works on said blockchain take place. In fact, every operation you carry out on the mainnet has an economic value in order to protect said network from attacks or misuse.
2. The mining or validation of transactions on mainnet is the only one whose reward has a real economic value.
3. The history of mainnet operations is what forms the distributed ledger of the network, that is, it is the history of the blockchain, the one that is protected by all possible resources of the parties that are within the network. In fact, the first block of this history is considered the genesis of a blockchain and its cryptocurrency.
4. The technology deployed on the mainnet is that which is available for general use by its users.
5. In order to differentiate the mainnet from the rest of the cryptocurrency networks, it is recognized with an ID and rules that clearly differentiate it from testnets. For example, in Bitcoin the mainnet network only allows the operation of addresses 1, 3 and bc1, while in the testnet addresses 2 and tb1 are used.
6. Every technology or feature that makes it to the mainnet has been heavily tested. All of these technologies are extensively tested by blockchain developers before they are approved for use within the mainnet.

How does the development of the mainnet affect the price of a cryptocurrency?

Continuous updates and revisions of the mainnet function is a basic thing for developers to consider if a cryptocurrency project is looking for success, not only as a development, but also in terms of price increase. For example, the arrival of SegWit in Bitcoin caused the value of the cryptocurrency to go from $4140 USD to more than $4370 USD, making clear the effect that this technological activation had on Bitcoin and its valuation.  The same event was replicated with the arrival of the Lightning Network and Taproot, confirming this fact.

Still, to dispel any doubts, one of the most recent events of this kind can be seen on Cardano. The arrival of smart contracts on the Cardano mainnet in September 2021 rapidly boosted the adoption and revaluation of this cryptocurrency. In fact, just the rumor and the arrival of this technology on the testnet fueled the growth in value of ADA, going from $0,3 USD to $3 USD per ADA.

With these examples it is very clear that all technology and progress that reaches the mainnet has a direct impact on the adoption of a blockchain, its cryptocurrency and all the technologies that a project presents. Thus, we can clearly say that the future and success of a mainnet and its capabilities is the future and success of a blockchain project.