A testnet is a network where a cryptocurrency is tested before it becomes available to the public.

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Before a currency switches to its own mainnet, all functionalities are tested. The functionalities are tested on a so-called “testnet”. Each network also has its own testnet, with Ethereum this is Goerli. When a new coin or token is created on the Ethereum network, it is first tested on the Goerli network. Testing is often done by developers themselves and, unlike the mainnet, is not open to the public. When everything works as it should, the testnet is transferred to a mainnet. By the way, the testnet often remains in existence. In case of updates, you can first test on the test network. Errors then have no major consequences and can be easily adjusted.

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In addition to safety, a testnet also has the advantage of being cheaper. This is because a fee must be paid for every transaction on a blockchain. This is not necessary with a testnet, so unlimited testing can be done without costing money.