Author

Topic: how the first BTC got created? (Read 164 times)

legendary
Activity: 3472
Merit: 4801
December 20, 2017, 09:33:12 AM
#12

I suggest you start by watching this video.  After that if you still have questions, let us know:

https://www.youtube.com/watch?v=bBC-nXj3Ng4
ok , so i've seen the video, twice now.

and yet , im not getting it.

how its possible to confirm a block if no  transaction was made ?

Note that the video is talking in general terms about how a system like bitcoins works, so rather than calling the value of the money in the system "Bitcoins", it calls it "Ledger Dollars".  Anytime he mentions "Ledger Dollars" he's talking about what the Bitcoin system calls "Bitcoins".

Starting at 17 minutes and 50 seconds in the video...

(This link should start the video at that point)
https://www.youtube.com/watch?v=bBC-nXj3Ng4&t=17m50s


"To reward a block creator for all this work, when she puts together a block, we'll allow her to include a very special transaction at the top of it in which she gets, say, 10 ledger dollars out of thin air. This is called the block reward, and its an exception to our usual rules about whether or not to accept transactions.  It doesn't come from anyone, so it doesn't have to be signed. It also means that the total number of ledger dollars in our economy increases with each new block. Creating blocks is often called mining, since it requires doing a lot of work, and it introduces new bits of currency into the economy.  But, when you hear or read about miners, keep in mind that what they're really doing is listening for transactions, creating blocks, broadcasting those blocks, and getting rewarded with new money."


So the "coin is being created" by the miner assigning value to themselves in the special "block reward" transaction.  Then they include that transaction in the block that they create (along with any other transactions that they want to include, if any) and they begin the proof-of-work.  Once the proof-of-work is completed, they broadcast the block to the network.

Therefore there is ALWAYS at least one transaction available for the miner to include in the block that they are working on (the block reward transaction).

Let say we just created the software, and we are going to work in the first block of the chain.  We create a transaction that pays us 50 BTC.  We then build a block with this transaction.  Next we complete the proof-of-work on this block.  Finally we broadcast this block to everybody that has our software.

Which part don't you understand?
member
Activity: 308
Merit: 11
December 20, 2017, 08:19:25 AM
#11
We could hear about the idea of Bitcoins in 2008, the real start was only in the next year. January 3, 2009, 6:15:05 pm - then the first block of Bitcoin, known as "block genesis", came out to light the day; when it was the first 50 BTC. 9 days later, Satoshi Nakamoto sent Hal Finney the first transfer, making the first bitcoin transaction in history. After 9 months of Bitcoin, they got their first exchange rate against the dollar - on the New Liberty Standard exchange it was reported that 1 $ = 1.309.03 BTC.
copper member
Activity: 117
Merit: 17
December 20, 2017, 08:03:03 AM
#10

I suggest you start by watching this video.  After that if you still have questions, let us know:

https://www.youtube.com/watch?v=bBC-nXj3Ng4

ok , so i've seen the video, twice now.

and yet , im not getting it.

how its possible to confirm a block if no  transaction was made ?

member
Activity: 518
Merit: 11
December 20, 2017, 12:05:33 AM
#9
I guess that nobody knows. except only the sathosi maker. everyone is speculating about this, but never finding a definite answer. that's what i know.
legendary
Activity: 3472
Merit: 4801
December 19, 2017, 11:43:14 PM
#8
The miner pays themselves the mining reward with a transaction.  Therefore, there is ALWAYS at least 1 transaction for the block.

i am sorry but can u elaborate ?

I suggest you start by watching this video.  After that if you still have questions, let us know:

https://www.youtube.com/watch?v=bBC-nXj3Ng4
full member
Activity: 158
Merit: 100
December 19, 2017, 09:22:32 PM
#7
The first genesis block was mined by developer(s) to address 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa. It doesn't have previous block and is unspendable. You can see some details at blockexplorer

https://blockchain.info/address/1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa?offset=1100&filter=6
copper member
Activity: 117
Merit: 17
December 19, 2017, 08:30:10 PM
#6
The miner pays themselves the mining reward with a transaction.  Therefore, there is ALWAYS at least 1 transaction for the block.

i am sorry but can u elaborate ?


The miner pays themselves the mining reward with a transaction.  Therefore, there is ALWAYS at least 1 transaction for the block.
how is done it?


The first 50 BTC were generated from the genesis block (the first block in the Bitcoin blockchain) which does not reference previous blocks.
There is some fantastic technical information about the genesis block here: https://en.bitcoin.it/wiki/Genesis_block
https://bitcoin.org/en/developer-guide#term-genesis-block

As with all other blocks, you can view details about it using a conventional block explorer: https://blockchain.info/block-index/14849

can any one explain this for an untechnical person (a kid for example)


i know satoshi had mined the first block but how come he mined no transaction and got rewarded for it.
(if i follow my concept of my first post) << PLEASE correct me if i am wrong.

sr. member
Activity: 420
Merit: 251
December 19, 2017, 11:06:54 AM
#5
The first 50 BTC were generated from the genesis block (the first block in the Bitcoin blockchain) which does not reference previous blocks.
There is some fantastic technical information about the genesis block here: https://en.bitcoin.it/wiki/Genesis_block
https://bitcoin.org/en/developer-guide#term-genesis-block

As with all other blocks, you can view details about it using a conventional block explorer: https://blockchain.info/block-index/14849
member
Activity: 87
Merit: 10
December 19, 2017, 10:54:48 AM
#4
The miner pays themselves the mining reward with a transaction.  Therefore, there is ALWAYS at least 1 transaction for the block.

Yes, so the first block was mined by satoshi who paid himself the block reward.
legendary
Activity: 3472
Merit: 4801
December 19, 2017, 10:47:33 AM
#3
The miner pays themselves the mining reward with a transaction.  Therefore, there is ALWAYS at least 1 transaction for the block.
copper member
Activity: 117
Merit: 17
December 19, 2017, 10:42:18 AM
#2
no one knows ?
copper member
Activity: 117
Merit: 17
December 18, 2017, 10:58:09 AM
#1
hi,
i have been thinking about it for quiet some time now.

as my understanding of how the coin is being created is by mining which its confirming transaction.

lets say we are in the first block of the chain, no one had btc cuz not transaction was made.
so no mining, no earning.

so how the first btc was create if no transaction and no mining was done?
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