Scientists say it was at this point that tiny aquatic creatures developed the ability to construct hard protective coats and build reefs to shelter and protect them in an increasingly dangerous world.
They were the first animals to build structures similar to non-living reefs, which are created through the natural processes of erosion and sediment deposition.
The study shows that the animals attached themselves to fixed surfaces - and to each other - by producing natural cement composed of calcium carbonate, to form rigid structures.
Cloudina were tiny, filter-feeding creatures that lived on the seabed during the Ediacaran Period, which ended 541 million years ago. Fossil evidence indicates that animals had soft bodies until the emergence of Cloudina.
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Findings from the study - led by scientists at the University of Edinburgh - support previous research which suggested that environmental pressures caused species to develop new features and behaviours in order to survive.
Researchers say animals may have developed the ability to build reefs to protect themselves against increased threats from predators.
Scientists say the development of hard biological structures - through a process called biomineralisation - sparked a dramatic increase in the biodiversity of marine ecosystems.
The study was published in the journal Science.