What is Testnet? This is one of the technical terms that are mentioned a lot in the cryptocurrency market ICO coin issuance projects. Testnet is a very important factor affecting the value of a newly released coin. To understand this concept better read the information below of the article.
1 – What is Testnet?
Testnet is an abbreviation of the phrase test network, which means a test network for developers to test the features and security of the blockchain to develop a new coin before it is officially put into operation. .
In summary, test network is a version for testing to ensure that no errors before the official activities.
2 – How important is the testnet for a new coin project?
The role of the test network is very important for both coin investors and project developers.
When an ICO project calls for investment, the most important thing is that investors need to find out the testnet information published by the project owner in their Whitepaper.
*Whitepager is a document that provides all the information of the project from test development to official release.
Investors will see the test network process of the new coin issuance project, based on that as a basis for assessing the potential level of the coin.
If the testnet is successful, the value of the coin will surely increase sharply. At this time, investors will decide to invest and hold the coin (hold coin) waiting for the official release to make a profit.
Conversely, if the test network process fails, the value of that coin will also be affected.
In summary, the role of testnet for investors is the basis for assessing the potential of the project. Testnet’s role for developers is for them to find bugs, make sure all features are working perfectly before the official release.