The genesis block is the platform on which the subsequent blocks that make up a blockchain registry are based, thus allowing the operation of a cryptocurrency.
In other words, the genesis block makes it possible to create a cryptocurrency. In this way, the data of each operation with these assets is collected in blocks and block chains. Each of these has a particular header that identifies it.
The first genesis block and Bitcoin
Bitcoin, which emerged in 2009, was the work of Satoshi Nakamoto and was the first cryptocurrency. Its genesis block is characterized by not having other blocks on which it sits.
Spawned on January 3, 2009, the Bitcoin genesis block comprised the first 50 bitcoins. It is especially striking that the genesis block of Bitcoin carried with it a message that read: “The British chancellor is considering a second bank bailout.”
The content of this message referred to a headline in the British newspaper London Times. In this sense, the indirect message of Satoshi Nakamoto was more than evident, since he sought to generate a currency that did not depend on any bank.
There are two important things to note about the Bitcoin genesis block:
- There is a difference of six days between its creation and the launch of the software.
- It was the first 50 bitcoins. It should be noted that these could not be spent.
What is it for?
The function of the genesis block is paramount when it comes to putting a cryptocurrency into operation, as it will be the base on which the following blocks and block chains are based. This means that it is the origin of all cryptocurrency.
Similarly, the genesis block is the element that facilitates communication between two nodes. Nodes can only be related if they have an identical genesis block. On the contrary, if it is different, it will be impossible for the nodes to be paired. All this assumes that the numerous blocks will end up going back to a genesis block, which will be the true root.
Acting as the origin or starting point of cryptocurrencies, it is also called the first block or block 0.
The influence on cryptocurrencies and the economy
Thanks to the genesis block it has been possible to create new cryptocurrencies and put them into operation. As its name suggests, it is the great starting point of cryptocurrencies.
However, work is underway to implement new genesis blocks in an effort to reduce waiting time.
There is no doubt that Bitcoin has become an important investment alternative and the fundamental role that the genesis block has played in it. As a key element, it was a crucial step towards free cryptocurrencies from governments and banking regulators.
Thanks to the genesis block there are no intermediaries in the operations. Transactions are verified by themselves in secure conditions, being recorded and, therefore, preventing unethical behavior from being hidden.
The genesis block has not only been decisive for the launch of Bitcoin, since cryptocurrencies such as Ethereum, NEM, Monero, Stellar or Litecoin have used a first block to later be able to create new blocks and block chains.