Cointelegraph is following the event of a wholly new blockchain from inception to mainnet and past by way of its sequence, Contained in the Blockchain Developer’s Thoughts. In earlier elements, Andrew Levine of Koinos Group mentioned some of the challenges the group has confronted since figuring out the important thing points they intend to resolve and outlined three of the “crises” which might be holding again blockchain adoption: upgradeability, scalability, and governance.
Blockchain testnets are an attention-grabbing topic as a result of they arrive in all styles and sizes. So, on this publish, my purpose 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 affect on value.
The obvious place to start out is with the identify: take a look atweb. The aim of a testnet is to take a look at a webwork. At a really excessive degree, there are two “flavors” of testnet. The primary is a testnet that’s launched previous to a mainnet (fundamental 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 through which they’re launched dramatically impacts the notion, and affect, of the discharge.
I’ll begin with the second sort of testnet as a result of, in a means, that is the extra easy context. Once you’re speaking about current networks like Bitcoin and Ethereum, testnets serve two major features. The primary is that they’re a stay surroundings through which 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’s similar to the “fundamental chain” (e.g. Ethereum) through which they will take a look at their code with successfully zero threat. Issues working 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 allows decentralized software (DApp) builders to extend the worth of their functions (i.e., make their apps higher) exactly as a result of there isn’t a 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. Usually, individuals who write sensible contracts will not be blockchain builders, and blockchain builders typically spend little or no time writing sensible contracts.
Mockingly, Koinos is throwing an enormous wrench on this distinction as a result of its whole system is carried out as sensible contracts! Since Koinos sensible contracts are upgradeable, which means any function might be added to the blockchain with no onerous fork, however it additionally implies that the folks 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 can be a function that’s 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 really massive and complex system known 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 chance of creating adjustments is that a lot larger.
Blockchain builders additionally want a stay surroundings with low stakes that they will use to check out their adjustments and see what breaks. Like software builders, they need this surroundings to be as near the actual community as attainable, which implies that they need their code to work together with code that software builders will probably be working as effectively.
Two sides of testnets
This reveals the two-sided facet 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 attainable, however with very low stakes. This allows each teams to enhance their merchandise and make them extra worthwhile to their customers.
Now we will begin to see why testnets appear to have such an affect 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 affect needs to be anticipated. The issue is that this correlation has led to a number of undesirable outcomes. Initiatives will usually launch a “testnet” that has no utility to builders for the only real function of boosting their token value. Sadly, many individuals will see the testnet announcement and simply assume that one thing worthwhile has been launched, and so the act may 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 current blockchains, which is that they create a protected house for software builders to check their functions and for blockchain builders to check upgrades to the underlying platform. This may aid you perceive the opposite essential context through 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 way extra on the system itself, because it has by no means earlier than been operational. In fact, since it’s new, there gained’t be any functions working on it anyway. Now the state of affairs is extra one-sided. The vast majority of the folks working with the codebase will probably be blockchain builders, and the purpose is to get the platform to a spot the place builders wish to really 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 precise exams which might be run. Assuming builders are satisfied that the platform is sufficiently protected, then they’ll should be educated on easy methods to use the platform. In different phrases, the testnet should be regarded as an academic instrument that allows builders to achieve a deeper understanding of how they are going to have the ability to 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 are going to inevitably discover locations the place the platform may very well be improved — essential libraries is perhaps wanted, or essential documentation is perhaps wanted to assist them perceive the system. This info 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 significant a part of our lives whether or not we understand it or not, and they’re solely rising in significance. Testnets are a essential step within the technique of releasing new and modern pc networks that may add ever-increasing worth to our lives. Hopefully, by gaining a deeper understanding of the nuances of testnets and the essential contexts through which 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 best 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 here are the writer’s alone and don’t essentially mirror or symbolize the views and opinions of Cointelegraph.
Andrew Levine is the CEO of Koinos Group, the place he and the previous improvement group behind the Steem blockchain construct blockchain-based options that empower folks to take possession and management over their digital selves. Their foundational product is Koinos, a high-performance blockchain constructed on a wholly new framework architected to provide builders the options they want with a purpose 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 improvement toolkit that can enable builders to construct and run sensible contracts on Koinos.