Cointelegraph is following the growth of a completely new blockchain from inception to mainnet and past by its collection, Inside the Blockchain Developer’s Thoughts. In earlier components, Andrew Levine of Koinos Group mentioned some of the challenges the crew has confronted since figuring out the key points they intend to resolve and outlined three of the “crises” which can be holding again blockchain adoption: upgradeability, scalability, and governance.
Blockchain testnets are an attention-grabbing topic as a result of they arrive in all sizes and shapes. So, on this submit, my purpose is to leverage my inside expertise as the CEO of Koinos Group (builders of Koinos) to demystify testnets and maybe give some perception into why they appear to have such an affect on worth.
The obvious place to begin is with the title: take a look atinternet. The aim of a testnet is to take a look at a internetwork. At a very excessive stage, there are two “flavors” of testnet. The primary is a testnet that is launched previous to a mainnet (important community), and the second is a testnet that is launched after a mainnet is already in operation. The capabilities these serve are related, however the context wherein they’re launched dramatically impacts the notion, and affect, of the launch.
I’ll begin with the second type of testnet as a result of, in a method, this is the extra simple context. While you’re speaking about current networks like Bitcoin and Ethereum, testnets serve two major capabilities. The primary is that they’re a stay surroundings wherein builders can take a look at their decentralized functions. Each good developer is aware of that there’s no such factor as excellent code, so testnets give builders an surroundings that is similar to the “important chain” (e.g. Ethereum) wherein they’ll take a look at their code with successfully zero danger. Issues working on a testnet are anticipated to interrupt, and the tokens used are anticipated to be nugatory.

Associated: London fork enters testnet on Ethereum as difficulty bomb sees delay
So, testnets are an surroundings that allows decentralized utility (DApp) builders to extend the worth of their functions (i.e., make their apps higher) exactly as a result of there is no expectation of full performance or wealth creation. In a sense, the worth of a testnet stems from its worthlessness.
DApp builders vs. blockchain builders
However testnets have a two-sided nature, which brings us to the second perform that testnets serve, and that perform is to the advantage of, not the DApp developer, however the platform developer (in our case, the blockchain developer). One factor I’ve been stunned to see from my distinctive perspective is how generally DApp builders are conflated with blockchain builders. Usually, individuals who write sensible contracts aren’t blockchain builders, and blockchain builders typically spend little or no time writing sensible contracts.
Mockingly, Koinos is throwing a enormous wrench on this distinction as a result of its complete system is applied as sensible contracts! Since Koinos sensible contracts are upgradeable, which means that any function may be added to the blockchain with out a arduous fork, but it surely additionally implies that the individuals growing the blockchain (like members of the Koinos Group) are utilizing and growing the exact same toolchain and toolkit that builders will use to construct their DApps. However this is a function that is completely distinctive to Koinos, so we will put that apart for the sake of this dialogue.

In each different blockchain, the blockchain builders must develop updates in no matter programming language the blockchain is written in (C++, Rust, Haskell, and many others.), and they’re engaged on a very giant and sophisticated system referred to as a “monolithic structure.” Inside monolithic architectures, altering any a part of the system can affect every other a part of the system, so the danger of creating adjustments is that a lot larger.
Blockchain builders additionally want a stay surroundings with low stakes that they’ll use to check out their adjustments and see what breaks. Like utility builders, they need this surroundings to be as near the actual community as doable, which implies that they need their code to work together with code that utility builders shall be working as nicely.
Two sides of testnets
This reveals the two-sided side of testnets. They permit each the builders of functions and the builders of platforms to work together with each other and safely take a look at their code in as near a stay surroundings as doable, however with very low stakes. This allows each teams to enhance their merchandise and make them extra useful to their customers.
Now we will begin to see why testnets appear to have such an affect on token worth. If we assume that worth is a perform of worth, and that testnets assist builders enhance the worth of their merchandise, then worth affect needs to be anticipated. The issue is that this correlation has led to a number of undesirable outcomes. Initiatives will typically launch a “testnet” that has no utility to builders for the sole function of boosting their token worth. Sadly, many individuals will see the testnet announcement and simply assume that one thing useful has been launched, and so the act may have the desired impact on the worth.
Testnets earlier than mainnet
Up till now, I’ve been specializing in the utility of testnets in the context of current blockchains, which is that they create a protected house for utility builders to check their functions and for blockchain builders to check upgrades to the underlying platform. This may assist you perceive the different vital context wherein testnets are launched, which is previous to the launch of the mainnet.
As soon as once more, testing is the major goal, however the focus is much more on the system itself, because it has by no means earlier than been operational. In fact, because it is new, there gained’t be any functions working on it anyway. Now the scenario is extra one-sided. Nearly all of the individuals working with the codebase shall be blockchain builders, and the purpose is to get the platform to a place the place builders wish to truly construct on it.
The primary requirement builders may have is that the platform is confirmed to be sufficiently protected, and that needs to be the prime directive behind the particular assessments which can be run. Assuming builders are satisfied that the platform is sufficiently protected, then they’ll must be educated on use the platform. In different phrases, the testnet should be regarded as an academic software that allows builders to achieve a deeper understanding of how they are going to be capable of use the platform whereas they’re additionally serving to to check the safety of the community.
Lastly, as they’re testing the community and studying use it, they are going to inevitably discover locations the place the platform could possibly be improved — vital libraries could be wanted, or vital documentation could be wanted to assist them perceive the system. This data is invaluable suggestions that the platform builders completely have to make use of to make the platform higher earlier than mainnet implementations are finalized.
Pc networks have turn out to be a main a part of our lives whether or not we understand it or not, and they’re solely growing in significance. Testnets are a essential step in the strategy of releasing new and modern laptop networks that may add ever-increasing worth to our lives. Hopefully, by gaining a deeper understanding of the nuances of testnets and the vital contexts wherein they’re launched, you at the moment are higher outfitted to guage particular testnet releases and whether or not they’re being designed and launched for the proper causes.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a determination.
The views, ideas and opinions expressed listed below are the writer’s alone and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.
Andrew Levine is the CEO of Koinos Group, the place he and the former growth crew behind the Steem blockchain construct blockchain-based options that empower individuals to take possession and management over their digital selves. Their foundational product is Koinos, a high-performance blockchain constructed on a completely new framework architected to offer builders the options they want to be able to ship the person experiences essential to unfold blockchain adoption to the lots.
Koinos Group is to launch model 2 of their testnet, which options stability enhancements, their mana fee-less transactions system and a contract growth toolkit that may enable builders to construct and run sensible contracts on Koinos.