On Jan. 3, 2009, an anonymous developer or groupcalling themselves Satoshi Nakamoto made history when theyreleased the Genesis Block, the original block containing the first 50bitcoins,onto Sourceforge. Unlike any of thehundreds of thousands of blocks that came after, Nakamotoleft a message in the code of the block:
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"
That linecomes straight from the headline of a LondonTimes article dated Jan. 3, 2009, which detailedbanks being bailed out by the Britishgovernment.While Nakamoto never clearly stated the message's meaning, many have interpreted it asa reference to why NakamotodevelopedBitcoin:to cut out the banks and intermediaries viewed as corrupt and unreliable, electing to create a more people-driven currency.
The origin of the Genesis Block is shrouded in mystery—who is Nakamoto, why the bitcoins within the original block remain unspendable, why the subsequent block took five (or six) days to mine, and why people still transferbitcoins into the Genesis Block.
Key Takeaways
- The Genesis Block is the first block of a blockchain, but on the Bitcoin blockchain, it belongs to the famous (or infamous) Satoshi Nakamoto.
- The Genesis Block on the Bitcoin blockchain has the original 50 bitcoins mined by Nakamoto.
- Fans contribute regularly to the Genesis block, possibly as a thank you or for spiritual reasons.
Let There Be Bitcoin!
The GenesisBlock, also knownas Block 0, is the ancestor that every other Bitcoin block can trace its lineageback to since every block traces back to a past one. Nakamotomined the original blockon a CPU (as opposed to the specialized machines miners now need) without any competition since no one even knew it existed at the time. It wasn't even worth anything—at least in fiat terms.Back then, Bitcoin was more of an experiment than anything, and it would still take around a year before it started to catch on. It would be incredibly easy for current miners to solve these blocks, which were set at difficulty1, a far cry from the current Bitcoin difficulty.
The next block, Block 1, wasn'tmined until fivedays later, on Jan. 8. This is considered odd, as the average timestamp gap between blocks is about 10 minutes. There are a few theories regarding the delay:Some believe that there were actually six days between blocks to testout the Bitcoin system in order to make sure it was stable (with a backdated timestamp). More spiritual followers believe in the six days as an intent to recreate the story of God's rest after creating the world in six days.
In Honor of Satoshi
While the original GenesisBlockcontained 50 bitcoins, people have been sending the addressbitcoins in tribute toNakamotosince the early days of the system. These donations and tips take on an even more symbolic meaning as it's quite possible that they areunable to be spent when they join the original address. It's unknown ifNakamoto'sintent was to not let the 50 bitcoins in the original block be spendable or if it was an oversight, but the GenesisBlock has become synonymous with Nakamotoand exists as both the backbone of the entire project and as a kind of shrine for fans of Nakamototo throw their bitcoins into, kind oflike a wishing well.
The GenesisBlock remains, for many Bitcoin devotees, the key to identifyingNakamoto. The idea is thatonly Nakamoto would be able to use the private key associated with the block and other early blocks to sign a message. If someone was able to sign messages using the privatekeys of the original blocks, it would offer solid evidence that they are Nakamoto.
A Benevolent God
Nakamotomined bitcoins for a few years after creating the Genesis Block because there was little competition. It is believed by the community, fans, and researchers that Nakamoto is the largest bitcoin holder, with an estimate of about 1 million bitcoins. Nakamotohasn't movedany coins since disappearing entirelyin 2011, andhas never made any effort to cash out even before disappearing.
Nakamoto's disappearance is generally a calming absence for Bitcoin miners, because if they ever decided to return, it could wreak havoc on the entire infrastructure. Basically, should Nakamotoever have the whim, they could flood the market with one million bitcoins, essentially annihilating the cryptocurrency's worth by introducingso much of it into the system. One bitcoin would become significantly less rare and thus worth far less.
How Much Bitcoin Is in the Genesis Block?
The Genesis Block on the Bitcoin blockchain originally has 50 BTC in it, but over the years it has grown as users and fans contribute to it for various reasons.
What Is Different About the Genesis Block?
The key difference between the Genesis Block and other blocks is that there is no block preceding it.
Can the Genesis Block Be Spent?
Presumably, the bitcoin in the Bitcoin blockchain Genesis block cannot be spent. However, there are other theories, such as the person with the private keys to the bitcoins spending them
The Bottom Line
The Genesis Block is the first block on a blockchain, but in the Bitcoin network, it is the first address of the entity that started it all, Satoshi Nakamoto. Perhaps the extra bitcoin offerings found in the GenesisBlock are meant as a quasi-religioussacrificeor perhaps as a small "thank you" to the anonymous creator.
Either way, Nakamotocasts a long shadow over the creation, and as Bitcoin climbs further into the mainstream, more and more attention is given to the hints left in the Genesis Block.
