• Goerli is a popular cross-client proof-of-authority testing network for Ethereum.
• Traders can send tokens from other chains to Goerli, using the testnet version of the actual ether.
• LayerZero developers have launched a cross-chain liquidity pool to enable devs to purchase testnet ether directly from Uniswap.
Goerli is a popular cross-client proof-of-authority testing network for Ethereum which was established in March 2019. Tests are run on applications before their final deployment on the mainnet, and traders can also send tokens from other chains to Goerli using the testnet version of the actual ether—which has no real world value.
Distribution Method of GoETH
The distribution method for native ETH (GoETH) has been a major bone of contention since it is primarily in the hands of a few validator entities who distribute only a small amount of GoETH. The traditional approach uses services called faucets to gain testnet tokens, which is deemed inconvenient by many.
Cross-Chain Platform LayerZero
In response, a cross-chain platform LayerZero designed a way for Goerli’s testnet ether to be traded and swapped between the Ethereum mainnet and the testnet, allowing users to buy GoETH directly from decentralized exchange Uniswap.
Fluctuation in Price
While tokens on the testnets are designed to have no real world value, there has been significant fluctuation in its price recently due to increasing demand among developers and traders alike.
Critics have warned against this new approach of monetizing the native currency of an open source project like Ethereum as it could lead to centralization issues with regards its supply and distribution.