A snapshot is a recording of the state of a blockchain at a particular block height. 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).
The Current State of Snapshots
At this stage, snapshots are mostly used during airdrop events, where tokens are distributed based on the balance of each blockchain address.
Although some blockchain systems can now access the historical data through snapshots, these snapshots are not stored on-chain and cannot be used by contracts and transactions.
We see this as a problem in expanding the real-life applications of the token economy.
On-Chain Snapshots on the FT Chain
In the token economy, tokens usually represent an interest. For example, FT is a unique rights representative of the FCoin community. You can use FT to vote on FCoin’s major issues, and you can also receive a corresponding proportion of revenue dividends. If you want to decentralize the exercise of token rights on the blockchain, you need snapshot support.
The on-chain snapshot is a huge innovation made by the FT Chain. On-chain snapshot data is part of the on-chain data of the FT Chain. All of the full nodes will store the same snapshot. In doing this, FT Chain solves the core problem of CPU consumption of the on-chain snapshot feature, making it more efficient and scalable.
Smart contracts can use the on-chain snapshot feature, which can obtain snapshots of any accounts, the balance of any asset, state of any contracts and other historical data at the snapshot time. Users can search snapshot data through the RPC interface, and also have access to smart contracts through virtual machines.
On-chain snapshots greatly expand the capabilities of smart contracts. Only through the on-chain snapshots can the decentralized community governance scenarios such as sharing dividends on-chain and voting on-chain be developed.
Use Cases of On-Chain Snapshots
Let’s explore some use cases for on-chain snapshots:
One use case of the On-Chain feature is a voting system for projects. A project has many stakeholders, such as the development team, marketing team, operation team, and management team, and these teams are funded by the token holders.
Token holders can vote to decide how the current project funding will be allocated amongst the team, or if they think the project needs to raise more funding. This is similar to how shareholders in public and private companies can vote in large decisions that affect the company.
Depending on the requirements of the project, dividends can also be paid out via the On-Chain Snapshot feature. Based on your holding size and duration, you can be paid dividends directly from the project. This is very applicable to cases where assets are being tokenized, such as real estate and other income-generating assets.
Other applications could be voting for buy-back-and-burns, marketing activities such as airdrops and events, and other key decisions to be made in the project lifecycle.
Have you read the FT Chain Whitepaper? Check it out here!
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