Tuesday, July 14, 2020

What is Bitcoin Genesis Block? Explained

The Takeaway:

Over the last decade, bitcoin has established itself as the main competitor to the existing banking system. In this article, we take a look at the genesis block of bitcoin and how it has gained a cult following in the crypto community.

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Since the inception of bitcoin, it has come a long way and is still going strong. Over the last decade, bitcoin has gone under several changes as it continues to work towards its mainstream adoption. In this article, we take a look at the leading cryptocurrency’s genesis block and how things got started. Crypto genesis software offers an easy and safe way to purchase hash power without having to deal with the complex hardware setup. 

 

The genesis block was mined 11 years ago.

Bitcoin is over 11 years old as its first block was mined on 3rd January 2009. Bitcoin’s elusive creator Satoshi Nakamoto mined the first Bitcoin block known as the “genesis block” or Block#0. This block marks the very start of the Bitcoin blockchain. Since then, bitcoin has come a very long way as a new block is mined every 10 minutes. 

 

50 bitcoins were rewarded for mining the genesis block 

The genesis block mined by the creator of bitcoin himself Satoshi Nakamoto contained just one transaction, and 50 bitcoins were rewarded for mining it. At today’s price, 50 bitcoins are worth over four and a half million US dollars. Currently, the reward for mining a block on bitcoin blockchain is 12.5 BTC, and it will decrease to 6.25 after the next halving event. 

Note: The next halving event is scheduled to take place in May 2020. 

 

Genesis block had a message written on the time stamp. 

The genesis block also contained a pointed message about the existing banking system with a message written into the code. The timestamp of the genesis block reads,

The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks.”

The text referred to the headline in The Times newspaper on that day. The timestamp was a comment on the failing banking system.

Note: British Chancellor Alistair Darling was considering a bailout for the banks after the financial crisis of 2008.

 

Rewards for the genesis block can not be spent.

Satoshi Nakamoto was rewarded with 50 bitcoins for mining the first block, but due to the way bitcoin blockchain is designed, the reward for that block cannot be spent. Over time people have donated additional BTC to the genesis block. The block has received over 1,000 transactions since its inception. 

 

When will be the last block mined? 

Approximately 144 blocks are generated per day. The last bitcoin is expected to be mined in the year 2140. There can only be 21 million bitcoins in existence, and there are 2,771,100 bitcoins left to be mined. 

 

The legacy of the genesis block 

The first-ever block on the bitcoin blockchain was mined nearly 11 years ago, and it has since gained a cult following in the crypto community. People often donate to the bock as a tribute to Satoshi Nakamoto because bitcoins donated to that block can never be spent. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

William Botello
William Botello
William is a market research coordinator who believes that blockchain technology and cryptocurrencies can revolutionize the financial landscape. He completed his studies in Arts and Sciences from Arizona State University.

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