The testnet is an alternative Bitcoin blockchain used for testing. Testnet coins are separate and distinct from actual bitcoins and they do not hold any value. This allows developers and users to experiment without worrying about losing actual bitcoins.
How to use Bitcoin testnet with Trezor
- Connect and unlock your Trezor device
- Open Trezor Suite and navigate to settings. Select the 'Crypto' tab and then Bitcoin Testnet under Testnet coins
- Click the 'X' to close and save
- You should then see Bitcoin Testnet listed in 'Accounts'
- Done. Your Trezor is now configured to use the testnet. You can continue using Trezor Suite as you normally do with standard cryptocurrencies
Simply put, the Bitcoin network is divided into three networks:
- The main network (where coins are traded as real currency)
- Testnet (where coins with no associated value are traded for testing purposes)
- A regression testing network (where coins are created instantly and are never traded to others outside the user’s network)
Coins cannot be transferred between networks, which is why it is possible to use the Testnet as an environment for learning.
Trading coins on the Testnet is the same process as trading them on the main network.
- Blocks are mined
- Coins are generated by the mining
- Users are sent Bitcoins by other users
- The transaction is recorded in the blockchain, blocks of transactions are mined, and the process repeats
Testnet coins are given away for free to anyone who wants them from what are called "faucet websites". These websites are set up by users with extra Testnet coins.