Blockchain technology has been an ongoing benefit of cryptocurrency since it was created, but a recent report from CCN suggests that it has reached the end of its era. Most companies will promise to bring major changes to the industry that they are in, but most technologies ultimately fail and are tossed aside. Based on the failure of many blockchain projects lately, the ones that have survived are still trying to hold the industry afloat.
Right now, considering the increasingly critical observers of the market are becoming more distrusting of the platforms that make these kinds of promises. Blockchain firms need to find a way to show their value, or risk becoming obsolete. TestNets provide a perfect opportunity to show that blockchain technology works in the way that it claims. This proof is crucial to survival as well, considering that the less useful projects are quickly being pushed out of the industry. Even though the testnet setup seems to be a way to dress up a launch that should already be ready for mainnet release, their value cannot be ignored.
The opinion that blockchain, as an industry, is useless is starting to become more popular in the traditional markets. There has yet to be true blockchain applications that have successfully change of the industries that they are applied to, and there is been studies that have shown the failure of ICOs to bring in blockchain applications, considering that 80% were hoaxes. However, the fact that less than 15% of legitimate ICOs ever made it to exchanges is more worrisome.
Take a look at PayCoin, a new project that planned to rehash old altcoins as their way of changing up cryptocurrency world. However, it ultimately failed, just like OneCoin and others. By allowing these kinds of projects to continually fail, the entire community ends up distrusting blockchain technology as a result of a lack of credibility. In a recent study on the tokens released during ICOs, the value since the sale was over is up to 70% than what it launched at.
With these failures considered, blockchain still has potential, even if only for the minimal projects that have succeeded. Many investors remain distrustful of these opportunities, which means that they are less likely to invest. Developers on more secure forms of technology are less likely to take on the venture as well, which is yet another reason testnets become important.
A testnet has the power to give validity to the claims of a blockchain project. COTI, for example, recently launched a testnet for its payments and stablecoin-based blockchain protocol. The testnet made it possible for mainstream companies to implement the protocol, showing the potential it has for the market. However, other testnets have historically been about the proof of concept or their processing power, though the ability to fine-tune a project before its ultimate release has been increasingly beneficial in the proof of use.
Perhaps the most important trait of a testnet is that it shows the progression of a project beyond the idea that pushed it along and makes it into a project that is actually useful. Even though the Tron testnet announcement was met with doubt, the proof that it was functional was enough to elicit new supporters. By doing so, Tron’s example has become a necessary part of the blockchain industry’s survival and application, from nodes to miners.
Still, a testnet does not always prove that a blockchain project will work out, or even that it is valuable. Many people could point out that the time between a testnet and a mainnet can be rather substantial. With that time, many things can change and the mainnet could ultimately be largely different from what consumers believe it will be.
Testnets remain a foundational tool for companies that need to show how blockchain can still help the public. With this small window into the progress of the project, blockchain can earn more followers and greater faith on what it can turn something into. Even though the heyday of the ICO has come and gone, blockchain projects still are able to prove themselves in value with the implementation of a testnet, rather than telling the public and hoping for the best.