Create a private network on Ethereum using CLI / Go-Ethereum

Ethereum-Private-Network

First look at the documentation on the Ethereum Go Github.
https://github.com/ethereum/go-ethereum

You will find a section with <code>init</code> and on "Operating a Private Network. In that section is
an example genesis.json file, also pasted below. You can change these parameters however you want.
I suggest that you make a random nonce to avoid people connecting to your private chain. The alloc
object is the prefund accounts with tokens. 

{
  "coinbase"   : "0x0000000000000000000000000000000000000000",
  "difficulty" : "0x20000",
  "extraData"  : "",
  "gasLimit"   : "0x2fefd8",
  "nonce"      : "0x0000000000000042",
  "mixhash"    : "0x0000000000000000000000000000000000000000000000000000000000000000",
  "parentHash" : "0x0000000000000000000000000000000000000000000000000000000000000000",
  "timestamp"  : "0x00",
  "alloc": {
  	"0x0000000000000000000000000000000000000001": {
  		"balance": "111111111"
  	},
  	"0x0000000000000000000000000000000000000002": {
  		"balance": "222222222"
  	}
  }
}

Once you have setup this genesis.json file you need to run it from your terminal with this command.
<code>geth --datadir /path/to/genesis.json init genesis.json</code>

The datadir section is optional, though is recommended because otherwise the private chain is
started in the default folder, or gets connected to the live ethereum blockchain if you are a full
node. When executed in your terminal, you should get back a success message in your terminal.
You should also have a new folder called "chaindata".

You can now connect to your private blockchain using geth. Geth now runs the same way it does on
the live blockchain but on your testnet. In the message that is returned from the terminal, it is
important to note the enode you are listening at and the IPC endpoint to connect other nodes.
<code>geth --datadir /path/to/genesis.json

If your terminal returns a message saying server started, you have successfully connected to your
private chain. You should now have 3 more folders created in your private chain directory including
dapp, nodekey and nodes.