Blockspace Efficiency

Definition ∞ Blockspace efficiency refers to the optimization of data storage and transaction processing within individual blocks on a blockchain. It involves maximizing the utility of limited block capacity by employing techniques that reduce redundancy and increase the information density of transactions. Achieving high blockspace efficiency is crucial for enhancing network scalability and lowering transaction costs.
Context ∞ Discussions around blockspace efficiency are prominent in the context of layer-2 scaling solutions and protocol upgrades aimed at alleviating network congestion. Innovations in data compression, transaction batching, and more compact data structures are actively pursued to make better use of finite block resources.