Transaction Size

Definition ∞ Transaction size refers to the amount of data, measured in bytes, that a single cryptocurrency transaction occupies within a block on a blockchain. This size is influenced by factors such as the number of inputs and outputs involved in the transaction. Larger transactions typically incur higher fees and consume more block space. It is a key metric for network efficiency and cost.
Context ∞ Discussions around transaction size frequently appear in news related to blockchain scalability and network congestion. Efforts to optimize transaction size, through methods like Segregated Witness (SegWit) or batching, aim to improve network throughput and reduce fees. Monitoring average transaction size can offer insights into network demand and the efficiency of protocol improvements.