Transition to Bitcoin Testnet4 for Improved Stability and Performance

We are pleased to announce that BitGo now supports testnet4, offering our users a much more reliable environment for testing Bitcoin applications. Whether you are developing wallets, dApps, or any other Bitcoin-related tools, we highly recommend making the switch to testnet4 to take advantage of the improvements and avoid the pitfalls of testnet3.

Why You Should Move to Testnet4

Bitcoin testnet3 has become increasingly unreliable due to several external factors that have impacted its stability:

• Unstable Mining Activity: While anyone can mine on testnet3, malicious actors often disrupt the network by mining empty blocks or flooding it with unnecessary transactions. This slows down the network, making it difficult for developers to properly test their applications and ensure smooth functionality.

• Difficulty Adjustments: The rules for adjusting mining difficulty on testnet3 are easily exploitable, leading to sudden, extreme fluctuations in the number of blocks mined. These swings can delay transaction confirmations, causing further interruptions and making the network less predictable for developers.

• Network Abuse: As testnet3 coins hold no real value, they are often abused by some users who flood the network with spam, causing a huge spike in fees, or hoarding coins. This type of behavior disrupts normal network activity and complicates testing for legitimate developers.

Transition to Testnet4

To resolve these issues and provide a more stable testing environment, the Bitcoin community has introduced testnet4. This new testnet incorporates several improvements designed to mitigate the problems seen on testnet3:

• Improved Stability: Testnet4 addresses challenges with mining and network congestion, ensuring that the test environment remains stable and more predictable for developers.

• Better Difficulty Adjustments: The difficulty adjustments on testnet4 are more robust, providing smoother and more consistent mining conditions for testing.

• Reduced Network Abuse: New measures in testnet4 make it more resilient to spam and hoarding, resulting in a more functional network for developers to test their applications.

For more information about the external factors contributing to the issues with testnet3, including griefing attacks and network disruptions, read this in-depth article by Jameson Lopp. It provides additional context on these challenges and their impact on the testnet environment.

How to Transition

Transitioning to testnet4 is simple:

1. Create a New Wallet: In the BitGo UI or SDK, create a new tbtc4 wallet.

2. Use a Faucet: Once the wallet is created, use a publicly available faucet to fund the new wallet. Please note that testnet3 funds cannot be transferred to testnet4 wallets, so you need to fund your testnet4 wallet separately.

As part of this transition, please note that testnet3 wallets will be deprecated in early 2025. 

We recommend that all users move to testnet4 well before this deadline to ensure continued stability and support for their testing activities.