diff --git a/genesis.json b/genesis.json
new file mode 100644
index 0000000..fe44101
--- /dev/null
+++ b/genesis.json
@@ -0,0 +1,13 @@
+{
+  "chain_id": "minichain_testnet_1",
+  "timestamp": 1716880000000,
+  "difficulty": 4,
+  "alloc": {
+    "0000000000000000000000000000000000000001": {
+      "balance": 1000000000
+    },
+    "0000000000000000000000000000000000000002": {
+      "balance": 500000000
+    }
+  }
+}
diff --git a/minichain/chain.py b/minichain/chain.py
index b65d575..bea653b 100644
--- a/minichain/chain.py
+++ b/minichain/chain.py
@@ -3,6 +3,9 @@
 from .pow import calculate_hash
 import logging
 import threading
+import json
+import os
+import sys
 
 logger = logging.getLogger(__name__)
 
@@ -28,22 +31,60 @@ class Blockchain:
     Manages the blockchain, validates blocks, and commits state transitions.
     """
 
-    def __init__(self):
+    def __init__(self, genesis_path="genesis.json"):
         self.chain = []
         self.state = State()
         self._lock = threading.RLock()
-        self._create_genesis_block()
+        self._create_genesis_block(genesis_path)
 
-    def _create_genesis_block(self):
+    def _create_genesis_block(self, genesis_path):
         """
-        Creates the genesis block with a fixed hash.
+        Creates the genesis block and initializes state from config.
         """
+        config = {}
+        if os.path.exists(genesis_path):
+            try:
+                with open(genesis_path, "r") as f:
+                    config = json.load(f)
+            except Exception as e:
+                logger.error(f"Failed to load genesis config: {e}")
+                sys.exit(1)
+        else:
+            logger.error(f"Failed to load genesis config: file {genesis_path} does not exist.")
+            sys.exit(1)
+        
+        # Apply genesis allocations
+        alloc = config.get("alloc", {})
+        for address, data in alloc.items():
+            balance = data.get("balance", 0)
+            if not isinstance(balance, int) or balance < 0:
+                logger.error(f"Invalid genesis balance for {address}: {balance}. Must be a non-negative integer.")
+                sys.exit(1)
+            account = self.state.get_account(address)
+            account['balance'] = balance
+
+        timestamp = config.get("timestamp")
+        difficulty = config.get("difficulty")
+        
         genesis_block = Block(
             index=0,
             previous_hash="0",
-            transactions=[]
+            transactions=[],
+            timestamp=timestamp,
+            difficulty=difficulty
         )
-        genesis_block.hash = "0" * 64
+        
+        computed_hash = calculate_hash(genesis_block.to_header_dict())
+        config_hash = config.get("hash")
+        
+        if config_hash:
+            if config_hash != computed_hash:
+                logger.error(f"Genesis hash mismatch. Config hash: {config_hash}, Computed hash: {computed_hash}")
+                sys.exit(1)
+            genesis_block.hash = config_hash
+        else:
+            genesis_block.hash = computed_hash
+            
         self.chain.append(genesis_block)
 
     @property
diff --git a/minichain/persistence.py b/minichain/persistence.py
index 10ec21b..6fa1fd6 100644
--- a/minichain/persistence.py
+++ b/minichain/persistence.py
@@ -126,8 +126,11 @@ def load(path: str = ".") -> Blockchain:
 def _verify_chain_integrity(blocks: list[Block]) -> None:
     """Verify genesis, hash linkage, and block hashes."""
     genesis = blocks[0]
-    if genesis.index != 0 or genesis.hash != "0" * 64:
+    if genesis.index != 0:
         raise ValueError("Invalid genesis block")
+    from .pow import calculate_hash
+    if genesis.hash != calculate_hash(genesis.to_header_dict()):
+        raise ValueError("Invalid genesis block hash")
 
     for i in range(1, len(blocks)):
         block = blocks[i]
diff --git a/tests/test_persistence.py b/tests/test_persistence.py
index 09ae89c..ff46454 100644
--- a/tests/test_persistence.py
+++ b/tests/test_persistence.py
@@ -89,7 +89,7 @@ def test_genesis_only_chain(self):
         save(bc, path=self.tmpdir)
         restored = load(path=self.tmpdir)
         self.assertEqual(len(restored.chain), 1)
-        self.assertEqual(restored.chain[0].hash, "0" * 64)
+        self.assertEqual(restored.chain[0].hash, bc.chain[0].hash)
 
     def test_state_snapshot_preserved(self):
         bc, alice_pk, bob_pk = self._chain_with_tx()
@@ -254,7 +254,7 @@ def test_corrupt_sqlite_falls_back_to_legacy_json(self):
 
         restored = load(path=self.tmpdir)
         self.assertEqual(len(restored.chain), 1)
-        self.assertEqual(restored.chain[0].hash, "0" * 64)
+        self.assertEqual(restored.chain[0].hash, bc.chain[0].hash)
 
 
 if __name__ == "__main__":