Definition ∞ The block size parameter sets the maximum data capacity for each block within a blockchain network. This limit dictates how many transactions can be processed and confirmed in a single block. A larger block size can increase transaction throughput, while a smaller size prioritizes decentralization and reduces network strain. This parameter directly influences network scalability and the costs associated with transaction processing.
Context ∞ Debates surrounding the block size parameter have been central to many blockchain scaling discussions, particularly within Bitcoin. The core issue involves balancing transaction capacity with network decentralization and node operating costs. Future advancements in layer-two solutions and alternative consensus mechanisms aim to mitigate the trade-offs associated with this fundamental protocol setting, seeking higher throughput without compromising security.
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