Cryptocurrency networks operate on the basis of corresponding encryption principles. Each block of such a system has a unique identifier – the sum of hashes of the previous and present links of the chain. Thanks to reliable encryption, cryptocurrencies are protected from hacking. However, the first link in any chain has no previous link. In the Efirium system, it is called the genesis block in the Ethereum blockchain. It is useful for novice crypto investors to know about this term and the features of such a link.
What is a genesis block
The word combination genesis block literally translates from English as “block of genesis”. A genesis block is the first link of a distributed ledger (cryptocurrency chain).
The Ethereum coin blockchain started its functioning with it. The genesis block is mined by the developers of the digital asset, not by miners and validators. Since all the links in the chain are numbered, the cryptocurrency community calls genesis block zero.
To understand what a genesis block is, it is necessary to understand the structure and principle of operation of a distributed ledger. Any system consists ofnodes (nodes) connected to it. The miners support it with their computing power. Such a node solves cryptographic equations to find the hash of a new block. The links in the cryptocurrency chain cannot be rewritten. If a block has already been created, it is no longer possible to change it.
The content of the genesis block is programmed by the developers. It includes a unique hash value and can carry any information. For example, the bitcoin genesis-block had the following function: 0x0000000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f. It also includes the comment, “The Times January 3, 2009. Chancellor stands on edge for second bank bailout”. The author of the first entry in the Bitcoin blockchain is Satoshi Nakamoto. His comment is the original headline of The Times Magazine. The article quoted was about the UK government’s inability to stimulate the traditional economy due to the effects of the 2007-2008 financial crisis.
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Genesis block is necessary for the cryptocurrency to work. The null link carries information that allows the following to link together and create a consistent chain.
Features of the genesis block in the Ethereum 2.0 blockchain
On December 1, 2020, the process of launching Ethereum 2.0 began. On this day, the zero block in the new Beacon Chain was generated. This cryptocurrency network is part of the Ethereum 2.0 ecosystem. It uses the Proof-of-Stake consensus algorithm. In such blockchains, miners are called validators. To mine blocks, they freeze personal cryptocurrency assets rather than using processing power.
The developers signed the zero block with the phrase “Mr. F was here.” The cryptocurrency community has deciphered the source of the message. The phrase is taken from the song by the band Queen – Mr. Fahrenheit. Earlier, the chief developer joked that no meaningful data would be added to the first entry.
Ethereum 2.0 is a blockchain hardfork of the ETH coin (the second most popular cryptocurrency in 2021 after bitcoin). The update has been dubbed Serenity. The main objectives of the network upgrade are:
- Improve efficiency.
- Increase the speed of operation.
- Increase scalability.
Hardfork – an update of the cryptocurrency network, which in most cases is accompanied by the division of the blockchain into 2 parallel chains. The term means a global change in the rules of operation of the digital system.
The Serenity update will allow the Efirium 2.0 blockchain to process more user trading transactions. Also, the new network will utilize the Proof-of-Stake method of verifying transfers. Ethereum 1.0, on the other hand, operates on a Proof-of-Work mechanism.
In 2021, Vitalik Buterin announced the imminent full transition of Ethereum 1.0 to version 2.0. The developer did not give an exact date. However, he confirmed that the final merger of the best sides of both systems will be carried out in the first quarter of 2022. The transition is planned in 4 phases (phases). In parallel, the Ethereum 1.0 blockchain is being prepared for the merger with Beacon Chain.
| Phase | Update |
|---|---|
| 0.0 | Launch of the new blockchain and creation of the zero blockchain. |
| 1.0 | Implementation of so-called “shards” – segments of the blockchain with unique sets of smart contracts. They create blocks in their own parallel, but are connected to the main chain. |
| 1.5 | The stage is not specified in the initial roadmap of the cryptocurrency project. There will be a recoding of the Efirium 1.0 system into a zero-shard to work in version 2.0. This will link the networks. |
| 2.0 | Ethereum 1.0 and 2.0 merge. The shards will merge into one blockchain with the genesis blockchain. The core tools from the first version of the network will be exported into the system. |
The main difficulty of the transition is the financing of the project. Vitalik Buterin personally invested about $1.9 million to create a genesis blockchain in the Etherium (ETH) blockchain. Also for the launch of the network appeared a deposit contract for the purpose of accumulating funds, in which more than 16 thousand community members invested.
Summary
Developers independently create the zero block because it has no predecessor and cannot be mined automatically. It is the starting point of the blockchain. Thanks to it, the data in the digital chain is linked together.
Ethereum (Ethereum) is among the top popular cryptocurrencies – in August 2021, it ranks second…
Find the genesis block in the Ethereum blockchain can be found thanks to the Etherscan service (monitoring the Ethereum network). To do this, you need to:
- Select Blockchain in the site’s header.
- Click View Blocks.
- Scroll to the end of the list using the Last button.
A genesis block can include hidden developer message and coded features. In Ethereum 2.0, it contains the phrase “Mr. F was here.” But this information has no practical meaning. Usually developers add such phrases to attract attention to the project.
Frequently Asked Questions
❓What is an ASIC?
This term means a special device that is used for computational operations. Such equipment is used by miners to mine cryptocurrency using the Proof-of-Work consensus algorithm.
🤔 How to become an Ethereum 2.0 validator?
Clients for connecting nodes to the network are created by well-known teams (Prysm, Lighthouse, Nimbus and Teku). To become a validator, you need to choose a program and precisely follow the instructions (on the GitHub resource) for its installation and configuration. Access to transaction validation will appear after the participant has blocked 32 ETH on the wallet.
❗ How secure are cryptocurrency networks?
Large blockchains are virtually impossible to hack. In PoW-validated networks, this would require capturing 51% of the computing power. For PoS blockchains, criminals would have to contribute (block) 51% of the coins mined.
⛔ Can the genesis blockchain be changed?
No, the blockchain is designed in such a way that any links in it cannot be deleted or edited.
✅ Can I add a note (text) to non-zero blocks?
Yes, blockchain technology allows additional content to be inscribed to links. It can be a signature of the miner (pool) or an advertising slogan.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.
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