Snapshot Definition
In cryptocurrency and blockchain technology, a snapshot refers to the capture of the state of the blockchain at a specific block height. It’s akin to taking a photograph of all the transactions and addresses at that precise moment. This technique is most commonly used when a new cryptocurrency is forked from the initial blockchain, providing developers a crystal clear image of who owns what at the time of the snapshot.
Snapshot Key Points
- The blockchain snapshot captures all information about transactions, addresses, and coin ownership at a certain block height.
- Snapshots are often used when a new coin is forked from the original blockchain.
- The information from the snapshot can be used to distribute new coins during a fork, using the balance of the previous blockchain’s coins.
- This picture of the blockchain at one moment in time is a helpful tool for troubleshooting issues, auditing, and analysis.
What is a Snapshot?
A Snapshot is a term in the world of cryptocurrencies for an occasion of sharing a digital shot that captures the state of a blockchain at a specific point in time. This point is delineated by the block height. In other words, a snapshot precisely shows the state and details of all transactions, addresses, and coin balances pertaining to that specific moment.
Where is a Snapshot Used?
A Snapshot is primarily used when a new coin is being forked off from an existing blockchain. Fork in the cryptocurrency world refers to an event where the blockchain splits into two versions.
When is a Snapshot Needed?
A Snapshot becomes necessary when a new coin is being created via a fork. The snapshot is taken before the fork happens, giving an image or state of the original blockchain. This information serves as the basis for distributing new coins on the new chain, enabling developers and stakeholders to know exactly who holds what.
Why is a Snapshot Important?
Snapshot is important not just to aid the creation of a new coin but also for troubleshooting purposes. It supports auditing, verifies coin distribution, affirms transparencies, and enables data analysis. The snapshot gives a complete and clear picture of the blockchain, making the process of auditing and analysis easier to scrutinize.
How does a Snapshot Work?
When a snapshot is taken on the blockchain, every piece of data pertinent to addresses, transactions, and balances of every coin holder is captured or ‘photographed’ at a specific block height. This data then informs the developers and stakeholders, helping to distribute new coins on the new chain resulting from a fork. It’s like taking a picture of a crowd before a throwout, ensuring everyone gets a fair share.
