Mainnet; The Real Contest Has Just Begun

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The 2018 is the first critical year for public-chain competition. Many blockchain projects launched in 2017 will usher in the first wave of main network launches this year.

According to the data from coindesk, the number of blockchain projects launched in 2017 reached 343, which is five times more than the total number added in the past three years. The financing amount was US$5.48 billion, which is 18 times that of the past three years.

There are many reasons for the outbreak. One of the important reasons is that Ethereum developed the ERC-20 standard in November 2015. Developers can create an ERC-20 standard on the Ethereum network in a short period of time. Tokens, wallets, and exchanges can also easily connect these tokens.

In order to raise funds, the project party generally distributes a part of the created token to the user in advance. The user uses BTC, ETH, etc. to subscribe for the product at a certain conversion ratio, after which the token will enter the exchange for circulation. After getting the money, the project party began recruiting for technology development and community promotion.

What is the main network (mainnet)?

The main net is relative to the test net. With reference to bitcoin.org’s definition of the main Bitcoin network, the mainnet refers to the original and major networks of Bitcoin transactions, which are circulated on the mainnet. Bitcoin has real economic value. The test network is similar to the main network, mainly for rapid project development iterations and early community involvement. By analogy, the main chain of other public chains refers to the officially launched, independently operating blockchain network. The transaction behavior on the network is recognized by all members of the community.

What kind of project needs the main network (mainnet)?

In general, projects that require the underlying protocol and DApps development need to have a main network to support, for example, focusing on the asset-specific public chain than the original chain. After the mainnet, it will support asset applications on its public chain.

In addition, projects that are merely used for circulation do not need the main network, such as the common platform currency.

Why does the token openly trade before the main network (mainnet)?

Before the emergence of the ERC-20 standard, project parties need to raise crowdfunds to create an Ethereum contract, and then issue tokens based on the ETH address provided by crowdfunding.

The emergence of ERC-20 standard, in principle, all the tokens can be traded immediately after creation, convenient and quick, but the project party will usually choose to trade after 3 months.

There are two main missions that Token trades before the mainnet:
- first, accumulate early-stage seed users as soon as possible;
- secondly, technology development and community operations advance simultaneously.

According to the design of most white papers, the mainnet usually takes about 1 year. During this long waiting period, after all, not all investors have such great patience.

What are the reactions to the community around the main network (mainnet)?

For a period of time before and after the mainnet, community users usually pay attention, for example, the most obvious is that short-term currency prices are vulnerable to emotional differentiation. After the mainnet, the project partner began to contact the wallets or the exchanges for mapping of the main network. In the project using the POW mechanism, the miners began to plan to purchase mining equipment. For projects using the AI ​​POW mechanism, such as the original chain team, Tensority, an innovative consensus algorithm based on tensor calculation, has attracted much attention from overseas communities. Drive the start of the entire community ecology.

What is the meaning of the main network (mainnet)?

First, based on the ERC-20 token’s original mission, it needs to be destroyed. The project party will generally convert the original token to 1:1 as the main currency after the mainnet is launched. According to the definition of coinmarketcap, a coin that refers to a cryptocurrency can operate independently; the token must depend on another cryptocurrency as a platform to run. As of May 90th, 2018, coinmarketcap listed 1,633 blockchain projects, of which 852 belonged to coin and 781 belonged to tokens with a common market value of almost US$330 billion.

Secondly, the launch of the mainnet means that the project is initially implemented, and subsequent business activities make sense. For example, a large number of DAPPs can be developed on it, and the good intentions described in the white papers of different chains really start to be tested by users. How to involve more technology developers, miners (projects using POW mechanisms), and coin holders It will allow enterprises and institutions in different industries to recognize it, which will bring great challenges to the technology and operations of the project.

So although the mainnet is a milestone, it is only the beginning of a difficult road.

Author: Marko Vidrih

@cryptomarks

Image via Pixabay

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