Definition ∞ Transaction density scaling refers to methods employed to increase the number of transactions that can be processed and stored within each block on a blockchain. This approach aims to maximize the utilization of block space, thereby enhancing the network’s overall throughput and efficiency. It often involves data compression or more efficient transaction encoding.
Context ∞ Transaction density scaling is a vital strategy for improving a blockchain’s capacity to handle larger transaction volumes, directly impacting network performance and user experience. Discussions focus on technical innovations that allow more data to be included in each block without increasing block size excessively, which could affect decentralization. Future developments will seek optimal balances between density, security, and node operational requirements.