Cointelegraph is following the event of a completely new blockchain from inception to mainnet and past by means of its sequence, Contained in 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 important thing points they intend to unravel and outlined three of the “crises” which can be holding again blockchain adoption: upgradeability, scalability, and governance.
Blockchain testnets are an fascinating topic as a result of they arrive in all styles and sizes. So, on this submit, my objective is to leverage my inside expertise because the CEO of Koinos Group (builders of Koinos) to demystify testnets and maybe give some perception into why they appear to have such an influence on value.
The obvious place to begin is with the identify: take a look atinternet. The aim of a testnet is to take a look at a internetwork. At a really excessive stage, there are two “flavors” of testnet. The primary is a testnet that’s launched previous to a mainnet (foremost community), and the second is a testnet that’s launched after a mainnet is already in operation. The features these serve are related, however the context during which they’re launched dramatically impacts the notion, and influence, of the discharge.
I’ll begin with the second type of testnet as a result of, in a approach, that is the extra easy context. If you’re speaking about present networks like Bitcoin and Ethereum, testnets serve two main features. The primary is that they’re a dwell surroundings during which builders can take a look at their decentralized purposes. Each good developer is aware of that there’s no such factor as good code, so testnets give builders an surroundings that’s similar to the “foremost chain” (e.g. Ethereum) during which they will take a look at their code with successfully zero threat. Issues operating on a testnet are anticipated to interrupt, and the tokens used are anticipated to be nugatory.

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So, testnets are an surroundings that permits decentralized utility (DApp) builders to extend the worth of their purposes (i.e., make their apps higher) exactly as a result of there isn’t any expectation of full performance or wealth creation. In a way, 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. Sometimes, individuals who write good contracts are usually not blockchain builders, and blockchain builders usually spend little or no time writing good contracts.
Mockingly, Koinos is throwing an enormous wrench on this distinction as a result of its total system is carried out as good contracts! Since Koinos good contracts are upgradeable, which means that any characteristic may be added to the blockchain with out a laborious fork, nevertheless it 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 it is a characteristic that’s completely distinctive to Koinos, so we are able to 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 so on.), and they’re engaged on a really giant and complex system referred to as a “monolithic structure.” Inside monolithic architectures, altering any a part of the system can influence every other a part of the system, so the chance of creating adjustments is that a lot increased.
Blockchain builders additionally want a dwell surroundings with low stakes that they will use to check out their adjustments and see what breaks. Like utility builders, they need this surroundings to be as near the true community as doable, which implies that they need their code to work together with code that utility builders will likely be operating as properly.
Two sides of testnets
This reveals the two-sided facet of testnets. They allow each the builders of purposes and the builders of platforms to work together with each other and safely take a look at their code in as near a dwell surroundings as doable, however with very low stakes. This allows each teams to enhance their merchandise and make them extra priceless to their customers.
Now we are able to begin to see why testnets appear to have such an influence on token value. If we assume that value is a perform of worth, and that testnets assist builders enhance the worth of their merchandise, then value influence needs to be anticipated. The issue is that this correlation has led to a number of undesirable outcomes. Tasks will usually launch a “testnet” that has no utility to builders for the only function of boosting their token value. Sadly, many individuals will see the testnet announcement and simply assume that one thing priceless has been launched, and so the act can have the specified impact on the value.
Testnets earlier than mainnet
Up till now, I’ve been specializing in the utility of testnets within the context of present blockchains, which is that they create a protected house for utility builders to check their purposes and for blockchain builders to check upgrades to the underlying platform. This can enable you to perceive the opposite vital context during which testnets are launched, which is previous to the discharge of the mainnet.
As soon as once more, testing is the first goal, however the focus is much extra on the system itself, because it has by no means earlier than been operational. After all, since it’s new, there received’t be any purposes operating on it anyway. Now the state of affairs is extra one-sided. Nearly all of the individuals working with the codebase will likely be blockchain builders, and the objective is to get the platform to a spot the place builders need to really construct on it.
The primary requirement builders can have is that the platform is confirmed to be sufficiently protected, and that needs to be the prime directive behind the precise checks which can be run. Assuming builders are satisfied that the platform is sufficiently protected, then they’ll have to be educated on easy methods to use the platform. In different phrases, the testnet have to be regarded as an academic device that permits builders to realize a deeper understanding of how they may 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 easy methods to use it, they may inevitably discover locations the place the platform could possibly be improved — vital libraries may be wanted, or vital documentation may 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.
Laptop networks have change into a serious a part of our lives whether or not we notice it or not, and they’re solely growing in significance. Testnets are a crucial step within 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 during which they’re launched, you are actually higher geared up to judge particular testnet releases and whether or not they’re being designed and launched for the suitable causes.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.
The views, ideas and opinions expressed listed below are the creator’s alone and don’t essentially mirror or characterize the views and opinions of Cointelegraph.
Andrew Levine is the CEO of Koinos Group, the place he and the previous improvement 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 provide builders the options they want as a way to ship the person experiences essential to unfold blockchain adoption to the plenty.
Koinos Group lately launched model 2 of their testnet, which options stability enhancements, their mana fee-less transactions system and a contract improvement toolkit that may permit builders to construct and run good contracts on Koinos.