A beta version is the first version released outside the organization or community that develops the software, for the purpose of evaluation or real-world black/grey-box testing. The process of delivering a beta version to the users is called beta release.
The users of a beta version are said beta testers. They are usually customers or prospective customers of the organization that develops the software. They receive the software for free or for a reduced price, but act as free testers
Source: Wikipedia
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