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However, scientists now believe they have finally been able to locate Hallucigenia's position in evolutionary history by showing that it is the ancestor of a small group of worm-like creatures with short, stubby legs that can be found today, living unobtrusively in the undergrowth of tropical forests.
Martin Smith and Javier Ortega-Hernandez of Cambridge University have detected key physical similarities between Hallucigenia and the so-called velvet worms, known more formally as the onychophorans - the first time zoologists have been able to rule conclusively on the creature's true role in history.
Their study, to be published in the journal Nature, is based on a detailed analysis of high-magnification images of the fossils of Hallucigenia, which grew no bigger than about 3.5cm long, showing five key characteristics that link the species to the velvet worms.
Among the most important features is the way the claws at the end of its limbs are arranged. Under an electron microscope, each claw has two or three successive layers of cuticle nestled one within the other, like the layered skins of an onion.
Dr Smith said: "We think this enabled them to grow a new set of claws before they shed their skins, which they had to do to grow. A very similar feature is found in the claws and jaws of the velvet worms, and no other animal shares this particular characteristic.
"It means that the animals do not have to wait for a new claw to form after shedding their skin to grow - they already have one ready formed," he explained.
Zoologists have also not always been completely sure which end of Hallucigenia is the front and which is the back, although Dr Smith said his research clears this up - the front has two or three pairs of appendages and the back has a rounded end where its body-length gut probably terminates.
It is now clear that the fearsome spikes on Hallucigenia's back, which were once confused for stilt-like legs, are almost certainly a defensive mechanism against the increasing number of predators that emerged during the Cambrian explosion.
- Independent