Traditionally, the term snapshot refers to the ability to record the state of a computer system or storage device at a specific point in time. Snapshot meaning in crypto is describing the act of recording the state of a blockchain on a particular block height. In this case, the snapshot records the contents of the entire blockchain ledger, which includes all existing addresses and their associated data (transactions, fees, balance, metadata, and so on).
Snapshots are typically used during airdrops events before each round takes place. During an airdrop, tokens are distributed based on the balance of each blockchain address. In this case, snapshots are taken to record the balance of each token holder, at a specific point in time where the airdrop happened. In most cases, users can move their funds after the snapshot is taken, without compromising their eligibility to participate in that round of distribution.
Snapshots are also crucial during blockchain hard forks, as they mark the block height in which the main chain will be recorded before giving birth to the new chain. For instance, when the Bitcoin Cash hard fork took place (on August 1st, 2017), every blockchain address that had Bitcoins at block 478,558, had the balance copied on the Bitcoin Cash blockchain. This is to preserve the historical data of all users before the fork. As soon as the split is done, each blockchain network will operate independently.
In conclusion, snapshot meaning in crypto is the act of recording the state of a blockchain on a particular block height. It has many uses in ensuring that the historical data of the blockchain is preserved when significant events occur.
