Definition ∞ Block Space Capacity refers to the finite amount of data that can be included in a single block on a blockchain network. This parameter dictates the maximum number of transactions a blockchain can process within a given timeframe. It represents a fundamental constraint on network throughput and scalability. Higher demand for this limited resource often results in increased transaction fees.
Context ∞ In cryptocurrency news, discussions surrounding Block Space Capacity are central to debates about network scalability and transaction costs, particularly for major blockchains like Bitcoin and Ethereum. When block space demand exceeds supply, transaction fees rise, impacting network usability and affordability. Proposed solutions, such as layer-2 scaling protocols or block size adjustments, are frequently reported as attempts to address this constraint and improve network performance.
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