The term Beta is often used in the IT industry to define the second software development cycle, right after the alpha stage. During this phase, the overall functionality and effectiveness of the software are heavily tested.
This is where you might come across software labeled as Beta (release). Users test out the real-world application of the software while providing their honest opinion/input for further refinement of the software.
The term closed/private beta testing is used when the beta version is only released to a small group of users. It is mainly appropriate while testing out software for specific demographics without the need of taking inputs at scale.
The same procedure is also applied while releasing new cryptocurrencies out in the market. Before getting enlisted in all the major exchanges, the cryptocurrency is thoroughly checked both inside out. This ensures that Blockchain architecture doesn’t collapse while trading.