Definition ∞ A testnet is a separate blockchain network used for development and testing purposes. It functions like the main blockchain but uses valueless tokens, allowing developers to experiment with new features and applications without risking real assets. This environment is crucial for validating code before deployment.
Context ∞ Testnets are frequently mentioned in news cycles preceding major protocol upgrades or the launch of new decentralized applications. Reports often focus on the stability of a testnet, the successful execution of new functionalities, or the participation of developers in testing phases, providing an indicator of the readiness and security of upcoming innovations within the cryptocurrency ecosystem.