Genesis Block

Categories: Trading, Stocks

A genesis block is like the Big Bang in a cryptocurrency’s universe: it’s the beginning of its existence, and every subsequent block in every blockchain can be traced back to that very first block. All cryptocurrencies have a genesis block, because…well…they have to start somewhere. This first block basically acts as a foundation for everything that comes afterward: all of the data, rules, protocols, etc. that are coded into the genesis block are then automatically a part of all future blocks, and those blocks pass it onto other, future blocks, and so on and so forth, like cryptocurrency DNA.

The Genesis Block (note its capitalized, proper noun status) refers to the very first block of Bitcoin, which was mined over six days way back in 2009 by its creator, Satoshi Nakamoto. The Bitcoin fandom loves the Genesis Block because it’s got more mysteries than a season of Stranger Things. For one, why did it take six whole days to mine 50 Bitcoin, something that could be done in mere hours? For two, was it a mistake or intentional that the Genesis Block’s code changed so its Bitcoin can’t be spent? And for three, what’s up with the cryptic message (“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”) embedded in the Genesis Block’s raw data?

We’ll leave the speculating to others, but one thing we know for sure is this: Nakamoto’s Genesis Block was a really big deal, no matter what sort of weird message he encrypted into it.

Find other enlightening terms in Shmoop Finance Genius Bar(f)