Block-by-Block Execution

Definition ∞ Block-by-block execution refers to the sequential processing of transactions and smart contract operations as they are incorporated into successive blocks on a blockchain. Each block, once validated and added to the chain, permanently records a set of transactions. This method ensures the chronological order and immutability of all network activities. It forms the fundamental operational mechanism of most decentralized ledgers.
Context ∞ In crypto news, block-by-block execution is often discussed in relation to blockchain scalability, transaction finality, and network congestion. Protocol upgrades aimed at increasing block size or reducing block times directly influence the speed and cost of this execution process. Understanding this concept is essential for assessing a blockchain’s capacity to handle transaction volume.