A snapshot records the state of a blockchain at a specific block height.

It captures the entire state of a blockchain at a specific point in time, including all existing addresses and their associated data (transactions, fees, balance, metadata, etc.).

It’s a frozen picture of the blockchain at a particular block height.

This information is typically used for airdrops, where tokens are distributed to holders of a specific cryptocurrency at the time of the snapshot.

Additionally, snapshots can be used for historical analysis or forensic investigations on the blockchain.

Determining eligibility for token distributions or governance rights

A snapshot can also refer to a specific time to determine the addresses eligible for receiving a token distribution or participating in a blockchain’s governance process.

This approach ensures that only holders of a specific cryptocurrency are eligible for the benefits at the snapshot time.

By taking a snapshot, the project team can reward early supporters and incentivize long-term holding of their tokens.

Here are some additional points to note about snapshots in crypto:

1. Snapshots are usually taken automatically by the blockchain software or through a dedicated smart contract.

2. The specific details of a snapshot, such as the time and block height, are usually announced beforehand to ensure transparency.

3. Snapshots are immutable, meaning the information recorded cannot be altered once the snapshot is taken.

4. Cryptocurrency projects may use different snapshot terminologies like a checkpoint or state root.

Examples of snapshots in crypto

1. Ethereum’s Constantinople upgrade

A snapshot was taken before the upgrade to determine which addresses would be eligible to participate in the new governance system.

2. Uniswap airdropped

Uniswap airdropped UNI tokens to all addresses holding ETH on the Ethereum blockchain at a specific snapshot time.

3. Cosmos’s Hub upgrade

A snapshot was taken before the upgrade to determine which validators would be eligible to participate in the new network.

Ultimately, understanding a snapshot concept is crucial for participating in airdrops, governance proposals, and other events within the cryptocurrency space.

It allows you to determine your eligibility and take necessary actions to claim your benefits.