Decoding Genesis Block: Why Forks Lack It
The Genesis Block, a cradle of blockchain genesis, isn’t universal across all cryptocurrencies. This inaugural block, akin to the biblical birth of the universe, kickstarts everything in a blockchain’s life cycle. In this piece, we navigate philosophical and biblical parallels, showcasing the likeness between the creation of the world and the inception of a blockchain.
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In the beginning, God created heaven and earth.
The earth was formless and empty, and darkness covered the deep water.
The Spirit of God was hovering over the water.
Then God said, “Let there be light!” And there was light
Genesis 1:1-4.
This Old Testament narration of the biblical creation bears an uncanny resemblance to the process of creating a blockchain. The ‘light' in the blockchain universe is the genesis block – the inception point of any new network. Much like the proclamation, “let there be light,” the genesis block signals the birth of a new blockchain platform.
What is the Genesis Block
Developers typically reference it in documentation as “block 0” or “block 1”, the specific numeral depending on the ‘philosophy' of different networks.
The genesis block marks the inception of every network (marked as 0 in some, 1 in others)
For a new cryptocurrency project, having its own genesis block signifies network integrity from inception and an equitable digital coin distribution from the project's launch.
What does possessing a unique genesis block mean for any cryptocurrency project?
Primarily, it indicates the project's independence, complete with its history and governing rules.
A cryptocurrency with its own genesis block does not use a clone of another project's blockchain. Instead, it lays down its own rules, continuously striving for improvement through perpetual upgrades.
Forks: Cryptocurrencies without their own Genesis Block
Cryptocurrencies devoid of their own genesis block are merely blockchain forks of other cryptocurrencies. Following a network split due to a hard fork, they distribute fork-coins free to all holders of the parent assets. For instance, Bitcoin Private, a fork of both Bitcoin and ZClassic, distributed a significant portion of Bitcoin Private coin supply to Bitcoin and ZCL coin holders over a certain period, with no mining or staking required – resembling a ‘bounty' format!
Surely, teams initiating forks are often prone to engaging in speculative tactics. At times, hard forks denote a radically contrasting perspective among parts of the crypto society concerning the development of the coin, or propose innovative solutions by setting distinct regulations following a specific block height. However, in a majority of instances, forks merely serve as an optimal mechanism for speculation, although some indeed harbor sincere desires to evolve into superior assets compared to the original coin.
In essence, by utilizing the established blockchain of renowned cryptocurrencies, new project developers inherently gear their efforts towards asset speculation. In order to create a fork, they simply devise a new set of rules. This new rule set is known to them before they reveal their project to the public, enabling them to exploit this information much earlier. A simple strategy entails acquiring a large number of coins on which the fork will be implemented and marketing this idea as insider intelligence to market makers who will artificially pump prices post the fork's introduction.
Bitcoin forks lack a genesis block
An exemplary instance of fork speculation practices
When the BTCP (Bitcoin Private) team proclaimed their plans for a complimentary distribution of BTCP coins to ZCL and Bitcoin holders, the value of ZCL sharply surged. Evidently, the originators of BTCP had purchased cheap ZCL before the disclosure of the new fork rules, leading one to surmise the significant profits each team member must have reaped. Such fork creation scenarios are not uncommon.
This underscores the importance of initiating any network with a genesis block, a crucial determinant for any non-speculative cryptocurrency.
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