This article will help you understand what the currency circle snapshot means?

Cryptocurrency snapshot is a detailed record of wallet balances and transactions on the blockchain network at a specific point in time. It is widely used for airdrops, fork rewards, on-chain voting, governance and tracking token distribution. Snapshots can be obtained through a blockchain explorer or third-party service. Snapshots offer advantages such as transparency, airdrop rewards, and market insights, but also have disadvantages such as privacy issues, data accuracy, and fees.

Coin Snapshot: Comprehensive Analysis

1. What is a Coin Snapshot?

Cryptocurrency snapshot refers to a detailed record of all wallet address balances and transactions on the blockchain network at a specific point in time.

2. The role of snapshots

Snapshots are widely used for the following purposes in the currency circle:

• Airdrops and forks: The project may reward users with airdrops or forks who hold specific tokens at the snapshot time.
• On-Chain Voting: Snapshots can be used to determine the voting power of addresses holding tokens at a specific block height.
• Governance: Snapshots can be used to understand the makeup of the community and determine token holder support for governance proposals.
• Track Token Distribution: Snapshots provide insights into the distribution of specific token holders, including the proportion of large versus retail holders.

3. Obtaining snapshots

There are two ways to obtain snapshots of the currency circle:

• By zone Blockchain Explorer: Many blockchain explorers provide snapshot services, such as Etherscan and BscScan.
• Through third-party services: There are also third-party platforms that specialize in providing snapshot services, such as Covalent and Flipside Crypto.

4. Advantages of snapshots

• Transparency: Snapshots can provide a complete record of wallet balances and transactions, improving transparency. .
• Airdrops and Rewards: Snapshots can be used to determine users who are eligible for airdrops and fork rewards.
• Governance Decisions: Snapshots help identify voting token holders to make informed governance decisions.
• Market Insights: Snapshots provide valuable data on token distribution and holder trends.

5. Disadvantages of snapshots

• Privacy issues: Snapshots record wallet addresses and may expose the user’s identity .
• Data accuracy: The snapshot only reflects the status at the moment of the snapshot and may be slightly biased.
• Cost: Third-party snapshot services may charge fees, especially for large-scale snapshots.

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