On January 3, 2009, anonymous bitcoin creator Satoshi Nakamoto launched the Genesis Block – the first block in the Bitcoin Blockchain. The event at the time was not celebrated – it was arguably considered an event in the long history of crypto and digital currency – but today we know that the Genesis block was one of the most important things to happen in the history of cryptocurrency.
Let’s talk about what the Genesis Block was and why it was important – even vital – to the growth of cryptocurrency.
What is a genesis block?
A blockchain ledger can be thought of as a numeric string of boxes, where each box contains a definite amount of data. Part of this data includes a reference to the previous block, which in turn contains information about the previous block and so on. This data can be traced back to the very first block in a blockchain, known as the genesis block.
A genesis block lays the foundation for a new blockchain and has a number of unique characteristics that no other block in its chain has.
As it concerns bitcoins genesis block, its creation marked the beginning of a new financial revolution and ushered in the era of decentralized digital currency.
What is special about a genesis block?
When a new blockchain is created, it is important that all participants in the network, called nodes, recognize the same block as the genesis block and synchronize from the same point. To ensure this, the genesis blocks are directly integrated into the source code of their respective protocol. No other blocks are permanently saved in this way.
Genesis blocks are also the only blocks that do not reference a previous transaction block. For all other blocks, they contain a hash value of the previous block. In the case of genesis blocks, this value is always zero.
Crypto tokens such as Attached, Chain link and Uniswap do not have genesis blocks. This is because unlike crypto coins, crypto tokens are built on a non-native blockchain like Ethereum, Solana or Binance Smart Chain.
The bitcoin genesis block
The bitcoin genesis block is famous for a number of reasons.
First and foremost, he is hailed as the first cryptocurrency block ever created on a globally viable site, proof of work powered blockchain. This historic moment paved the way for the creation of the disruptive digital asset industry we know today.
That being said, much like its mysterious creator(s), bitcoin’s beginnings are also deeply shrouded in mystery.
In the original version bitcoin source code distributed in 2008, Bitcoin’s creator(s), Satoshi Nakamoto, referenced the hash of bitcoin’s genesis block as,
“0x000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f”
Cryptographer Ray Dillinger, aka Cryddit, was one of the first to receive the original Bitcoin source code. They noted that the genesis block hash in the initial source code was different from the bitcoin genesis block hash produced when Nakamoto launched the protocol on January 3, 2009, several months later.
The following bitcoin genesis block hash was found to be:
000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f
The two values are nearly identical except for the second character. Some have suggested this may point to an earlier Bitcoin blockchain that Nakamoto may have created for “for testing purposes” but never continued. However, like Nakamoto’s true identity, the existence of this potentially earlier bitcoin blockchain remains unclear.
How many BTC were minted in the bitcoin genesis block?
When Satoshi Nakamoto mined the official bitcoin genesis block in 2009, 50 BTC was first created and sent to the wallet address: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa.
To date, these early coins have never been moved from this wallet, although the address has received an additional 18.5 BTC from over 3,600 wallets. These payments can be tributary contributions from loyal bitcoin supporters or simply accidental transactions. These transactions could be considered digital graffiti – a kind of “I was here” made by bitcoin devotees.
After the genesis block was created, it took another six days before Nakamoto mined the second bitcoin block. Again, it’s unclear why it took so long for the second block to be mined, but some believe it was a nod to the seven days of the Bible’s creation.
Who owns the first bitcoin block reward?
When a new block is mined, the first transaction recorded in that block is known as the coinbase transaction. This refers to the new amount of native cryptocurrency that is created after the mining process and put into circulation as a block reward.
The bitcoin genesis block coinbase transaction, however, was omitted from the global transaction database by Nakamoto, meaning the amount could never be spent. It is still unclear whether this was intentional or accidental on Nakamoto’s part.
Despite the great uncertainty surrounding bitcoin’s genesis block, its creation remains one of the most important moments in history, not just for cryptography, but for global financial freedom and self-sovereignty.
These materials are for general informational purposes only and do not constitute investment advice or a recommendation or solicitation to buy, sell or hold any digital asset or to engage in any specific trading strategy. Some crypto products and markets are unregulated and you may not be protected by government indemnities and/or regulatory protection schemes. The unpredictable nature of crypto-asset markets can lead to loss of funds. Tax may be due on any returns and/or increases in value of your Crypto Assets and you should seek independent advice on your tax position.
