Pre-Allocate Ether in Genesis Block

This section describes how to pre-allocate ether in the genesis block.

In previous tutorials, we have learned how to create a private Ethereum network, mine new blocks, and collect mining rewards.

By default, the total Ether value of the network starts with no pre-allocation Ethers. But the total Ether value will grow by 5 Ether each time a new block is created in its blockchain, because 5 Ether is awarded to miner who created the block.

The total Ether value of the private network can be calculated with the following formula:

Total_Value = Pre_Allocation + 5 * Number_of_Blocks

For example, if you have a private network with 1,000 blocks with no pre-allocation, the total Ether value of the network will be:

Total_Value = 0 + 5 * 1000 = 5000 Ether

If you want to create a new private Ethereum network with some pre-allocated Ether fund, you need use steps given below:

1. Decide a "datadir" folder and network ID for the new network.

2. Create the first Ethereum account in the "datadir" folder to hold the pre-allocated Ether fund.

3. Create a genesis block file in JSON format with some Ether fund allocated to the first Ethereum account and a reasonable mining difficulty level.

4. Initialize the blockchain with the genesis block file.

5. Start the Ethereum node.

6. Start the Ethereum miner with the second Ethereum account.

See the next tutorial on how create a new private network using these steps.

Table of Contents

 About This Book

 Introduction of Ethereum

 Ethereum Blockchain

 Ethereum Mist Wallet

 geth - Go Ethereum

 Deprecated: Testnet - Ropsten Network

 Private Ethereum Network

 64-Bit "geth" for Private Ethereum Network

Private Network with Custom Genesis Block

 Build Genesis Block Manually

 Run "miner" with Lower Difficulty

 Check Mining Rewards on My Account

Pre-Allocate Ether in Genesis Block

 Build Ethereum Private Network Properly

 Blockchain Difficulty Level and Growth Rate

 "Head State Missing" Error on Restarting "geth"

 Download and Install "geth" 1.8.2

 Run and Restart with "geth" 1.8.2

 Transferring Funds between Ether Accounts

 MetaMask - Browser Based Ethereum Wallet

 Using MetaMask Wallet

 Getting Free Ether on Test Networks

 Managing Ethereum Account

 Mining Ether with Your Computer

 Archived Tutorials

 References

 Full Version in PDF/EPUB