What does the launch of the Mainnet mean (Will the coin price increase when the Mainnet is launched)?

What does the launch of the Mainnet mean, is the digital currency issuer or project called the “Mainnet” or “Network”? In English, it refers to Ethereum or EOS, with the main purpose of using blockchain as a technology for transactions.

However, this model did not have a good start: Ethereum had already been launched for some time, and Bitcoin was about to officially start public offering in December 2018. Therefore, during the bull market in 2017, investors did not pay attention to the progress and prospects of this project. When ICO was popular at the end of 2017, some speculators even thought that ICO was just a joke. Later, due to people’s increasingly calm attitude towards the development of blockchain technology, a phenomenon appeared in the cryptocurrency circle, which was the occurrence of many things related to ICO. So what is ICO? Because it is a very complex workflow and involves high costs, many so-called virtual assets are sold through third-party companies or other means, but these costs are high. If the exchange does not provide related services, it cannot bear the impact of price increase.

From the above “Network” mentioned, it looks like a set of game rules, codes, and a series of protocols, etc. But in the blockchain industry, it is different. “Network” refers to a way in which a system is operated based on specific algorithms. When users use the software, the system will automatically generate corresponding smart contract instructions according to the users’ needs, thereby ensuring the security of the platform’s user data and preventing tampering and leakage, and anyone can retrieve information at any time to ensure the stability of the system.

Will the price of coins increase when the Mainnet is launched?

Editor’s note: This article is from BlockBeats (ID: 0xB18), authorized to be reproduced by Odaily Star Daily.

In the past year or so, the cryptocurrency market has experienced a major surge. According to data from CoinMarketCap, the price of Bitcoin has been hovering around $31,000 since January 4. But as the launch of the Mainnet approaches and the price of the coin rises, people are optimistic about whether this bull market will continue. So how do we predict this bull market? I think there are two main factors:

First, investors and exchanges are the main beneficiaries of this bull market. From this perspective, the way investors invest in digital assets has undergone significant changes. Second, mainstream exchanges are listing coins at a very fast pace.

The third aspect is the increasing number of platform users, most of whom are institutional clients. So when they see the launch of large-scale projects, it will attract a large number of new users to the platform and attract more traders to enter, thus increasing the overall activity of traders. However, this situation is unlikely to happen in reality.

1. Is the growth of exchange users slowing down? If the number of exchange users does not increase, it will be difficult to obtain high rewards, because users cannot keep funds in wallets or obtain income through third-party services or platforms.

2. Will the total holdings of exchange users decrease? Due to issues such as no custodial fees, withdrawal fees, and margin mechanisms charged by exchanges, network congestion is a common problem. Therefore, the percentage of holdings by exchanges should not decrease too much.

3. The nature of centralized exchanges is different from that of decentralized exchanges, in terms of technical strength, security technology, and compliance, etc. In this case, exchanges can provide more reliable services and save investors a lot of time and maintenance costs.

In the traditional Internet financial system, users are usually forced to purchase securities or stocks through various channels and then trade on exchanges, so that consumers can better understand the assets they hold and their risk status, thereby improving profitability and reducing the investment burden of investors.

In the decentralized world, trust of users needs to rely on their own data or information accumulation, and blockchain needs to rely on its own application scenarios to achieve this. The emergence of blockchain technology enables the entire industry to operate in a transparent and trustworthy manner, making enterprises more open and efficient in executing business operations.

Currently, most blockchain-based products are in the experimental stage and have not been well demonstrated in practical applications. Moreover, many companies have encountered many troubles when trying to use blockchain technology to solve the financing difficulties of small and medium-sized enterprises. For example, in July 2018, China Telecom’s subsidiary, Bank of Internet, successfully completed the first “blockchain +” loan business in China. Such phenomena occurred in late December last year.