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  1. 1. What are these cryptocurrencies?
  2. 2. Bitcoin - the story of a technological revolution
  3. 3. Satoshi Nakamoto, who is the creator of Bitcoin?
  4. 4. Vitaly Buterin – the creator of Ethereum
  5. 5. What is blockchain, and how does it work?
  6. 6. What is an NFT token?
  7. 7. What is money?
  8. 8. Cryptocurrencies vs fiat money, which will win?
  9. 9. What is DeFi (Decentralized Finance)?
  10. 10. DeFi: opportunities, advantages and disadvantages of decentralized finance
  11. 11. What is an altcoin?
  12. 12. Stablecoins - What are they?
  13. 13. Cryptocurrency wallet - what is it?
  14. 14. Why do we talk about bull and bear markets?
  15. 15. Security in the crypto market - what rules are worth following?
  16. 16. What is the seed phrase in cryptocurrencies?
  17. 17. Dogecoin and memecoin - what are they?
  18. 18. What is a Ponzi scheme?
  19. 19. What is a Soft and Hard Fork?
  20. 20. Blockchain - examples of use
  21. 21. Is blockchain safe?
  22. 22. What are the types of blockchain networks?
  23. 23. What is blockchain network congestion, and how does it work?
  24. 24. Cryptocurrency wallets: Hot Wallet vs. Cold Wallet - key differences!
  25. 25. Cryptocurrency wallet diversification
  26. 26. Halving Bitcoin - what is it, and how does it affect the price?
  27. 27. Blockchain versus databases: key differences!
  28. 28. How do you transfer cryptocurrencies?
  29. 29. The most important cryptocurrency acronyms/slang you need to know!
  30. 30. The memecoin story: madness or great investment?
  31. 31. What is Ethereum? 
  32. 32. Everything you need to know about gas fees in Ethereum!
  33. 33. Gavin Wood: Blockchain Visionary and Co-Founder of Ethereum
  34. 34. Decentralized Apps – what are they?
  35. 35. What is Proof of Work (PoW) and what is Proof of Stake (PoS)?
  36. 36. What is the Proof of Authority (PoA) consensus mechanism?
  37. 37. What is Proof of Burn (PoB)?
  38. 38. What is a whitepaper? What is its purpose, and how do you write it?
  39. 39. Smart Contracts - what are they?
  40. 40. Know your customer (KYC) and Anti-money laundering (AML) what are they in the cryptocurrency industry?
  41. 41. Blockchain and NFT games - how to make money on them?
  42. 42. Liquidity in the cryptocurrency market
  43. 43. Inflation and its effects on financial markets
  44. 44. What is stagflation and why does it have a negative impact on the market?
  45. 45. What are utility tokens and what use do they have in the cryptocurrency sector?
  46. 46. What is cryptocurrency mining?
  47. 47. What is the mining difficulty?
  48. 48. What is compound interest, and how does it work?
  49. 49. What Are Privacy Coins and Are They Legal?
  50. 50. What is CBDC - central bank digital money?
  51. 51. What is Cryptocurrency Airdrop all about?
  52. 52. Key differences between ICO, IEO and STO
  53. 53. What are decentralized DAO organizations, and how do they work? What are DAO tokens?
  54. 54. What is EURT? How does it work?
  55. 55. What is the difference between Circulating Supply and Total Supply?
  56. 56. Snapshot from the world of cryptocurrencies - what is it?
  57. 57. What is the Fear and Greed index for cryptocurrencies?
  58. 58. APR versus APY: what is the difference?
  59. 59. What is an Initial Farming Offer (IFO)?
  60. 60. What is Regenerative Finance (ReFi)?
  61. 61. Who Is Craig Wright, the Alleged Creator of Bitcoin?
  62. 62. What Is Bitcoin (BTC.D) Dominance?
  63. 63. Michael Saylor, Self-Proclaimed Bitcoin Maximalist
  64. 64. Bitcoin Pizza Day
  65. 65. AI blockchain - a new look into the future?
  66. 66. What is WorldCoin? Everything you need to know about this cryptocurrency!
  67. 67. Azuki NFT collection guide: everything you need to know about it!
  68. 68. The 10 most expensive non-fungible tokens (NFTs) ever!
  69. 69. The Bored Ape Yacht Club (BAYC) - the story of the popular NFT collection!
  70. 70. CyberPunks - the story of the most popular NFT collection in the crypto industry!
  71. 71. NFT Art: The digital art revolution - history and examples!
  72. 72. Who is Changpeng Zhao, CEO of Binance?
  73. 73. Who is Brian Armstrong - CEO of Coinbase?
  74. 74. Who is Galy Gensler and the SEC? How does the Securities and Exchange Commission (SEC) affect the cryptocurrency market?
  75. 75. Web3's most popular social media platforms! Will they replace the platforms we know?
  76. 76. What is IoT - the Internet of Things?
  77. 77. On-chain analysis in the cryptocurrency world: Everything you need to know about It
  78. 78. Can you pass on your cryptocurrencies after death? How do you pass on a cryptocurrency inheritance?
  79. 79. What is the Howey test? What application does it have in cryptocurrencies?
  80. 80. The use of blockchain technology in the world of sport
Lesson 56 of 80
In Progress

56. Snapshot from the world of cryptocurrencies – what is it?

A snapshot – Its definition is simple. It is the ability to record the state of something at a particular time. In terms of the blockchain, a snapshot is the documentation of the state of a chain at a specific height at a certain time. It is used to track the overall quantity and balance between token holders. A snapshot can be taken at any time.

Interpretation of snapshots in general

Taking snapshots is very similar to taking photographs. The difference is that with blockchain technology, we take a snapshot of the data at a specific time. Snapshots are not a complete duplicate of the data. They are largely metadata that define a particular state of the information. They can be stored on the local server or the device on which they were created.

Imagine a situation like this. We are testing a new application or programme. New settings or data entered may compromise the application in question. Snapshots are often used for such purposes. They allow access to an almost infinite number of data clones. In this way, they improve and enable developers to work on the development of a particular application without exposing it to possible damage.

Snapshots can also be used to fully automate the work. They also don’t take up much extra storage space. Snapshots are also a great failsafe. If something goes wrong, you can restore the server in question to the point where the error occurred. This is why snapshots are so widely used. Every time we take a snapshot, we create a backup.

At this point, you might tell us – why do I need snapshots when I can make a full backup of the data I need! Well, yes. However, remember that it takes hours to create a full copy. For enterprise systems, these are usually created overnight to make full use of the system resources required. Snapshots, on the other hand, can be created at any time. And as often as you require. In addition, you can deduplicate the data covered by the snapshot, e.g. using other technologies such as Modified Block Tracking.

Reminder We can only store snapshots for a limited period of time. If you do not handle it properly, you can create incredibly complex data chains with extremely long consolidation times.

The paragraph above deals with snapshots in a more general way. In the case of blockchain technology, remember again that a snapshot is a record of the state of a blockchain, at the time of a specific block height. A snapshot captures the entire, ledger of the blockchain, including all existing addresses and  associated data.

Snapshots during airdrops

We have written here about airdrops [LINK-WHAT AN AIRDROP CRYPTOWALUT-INTRODUCTORY LEVEL]. Have a look at this lesson before you continue.

Before each airdrop, snapshots are practically always taken. The tokens in the snapshots are distributed based on the balance of each blockchain address that was currently available during the snapshot period.

Snapshots are intended to record the balance of each token holder at a specific point in time, i.e. the block height. The user can shift his balance at any time after the snapshot without jeopardizing it in any way. This also does not prevent him from qualifying for a payout round.

Equally important, snapshots are taken during hard forks of the blockchain. Snapshots then mark the height of the block where the main chain is stored before a new chain is created. For example, in August 2017, when the Bitcoin Cash hard fork took place, the balance of every address that had Bitcoin in block 478,558 was copied to the Bitcoin Cash chain. Why? Because the two blockchains shared the same historical data. After the fork, each became an independent chain.

Another use of snapshots is to save the coin balances of users who want to participate in the Initial Exchange Offering (IEO).

However, you need to know that special rules apply to snapshots. They depend on the guidelines of the individual projects. In some cases, snapshots are taken at random times and users’ balances are averaged on this basis.


Blockchain technology is developing rapidly. Platforms that use it for their operations need to adapt to it at lightning speed. Snapshots are one such solution to keep up with the pace. Now that you know what they are, you can boldly move on to the next lesson!