1. What is testnet in Bitcoin?
The Bitcoin testnet is a public test network, which is not connected to the main chain.
The testnet still functions just like the main chain. Meaning that in order to “test” you also have to wait 10 minutes for each block. And you are connected to other nodes on testnet.
Bitcoin transacted on the testnet have no value on the main chain, as the main chain will not accept these transactions.
2. What is regtest mode?
“For situations where interaction with random peers and blocks is unnecessary or unwanted, Bitcoin Core’s regression test mode (regtest mode) lets you instantly create a brand-new private block chain with the same basic rules as testnet—but one major difference: you choose when to create new blocks, so you have complete control over the environment.
Many developers consider regtest mode the preferred way to develop new applications. The following example will let you create a regtest environment after you first configure bitcoind.”
Regtest mode = A private implementation of the Bitcoin block chain where you control everything and are not connected to other nodes.
3. What is the advantage and disadvantage of each? (TRY TO THINK FOR YOURSELF)
Testnet : Provides real world testing of application. By means of being connected to other nodes and have a actual transaction send and propagated through the network. This is both the advantage and disadvantage. Depending on what it is you are trying to accomplish.
Regtest : Provides the best way for building and developing on Bitcoin. Since there is no block time to hold you up. And you can mine your own blocks in order to develop and test in a “isolated environment”.
Testnet = Real world testing.
Regtest = Building & developing.