How Does a Variable Block Size Mechanism Impact Transaction Throughput and Front-Running Potential?
A variable block size allows a blockchain to temporarily increase its capacity during periods of high demand, improving transaction throughput. This flexibility can reduce network congestion and the spike in gas prices.
Lower, more stable gas prices reduce the economic incentive and opportunity for front-runners, as the cost of outbidding the victim is less volatile.
Glossar
Throughput
Capacity ⎊ ⎊ Throughput, within cryptocurrency and derivatives markets, fundamentally represents the rate at which a system processes transactions or data, often measured in transactions per second (TPS) or orders per millisecond.
Variable Block Size Mechanism
Mechanism ⎊ The variable block size mechanism is a protocol design feature that allows the maximum capacity of a blockchain block to fluctuate dynamically in response to network demand, rather than being fixed at a static limit.
Variable Block Size
Flexibility ⎊ Variable block size refers to a blockchain protocol design where the maximum capacity of a block is not fixed but can dynamically adjust based on network conditions, such as current demand or validator capacity.
Effective Block Size
Capacity ⎊ Effective Block Size, within cryptocurrency networks, represents the theoretical maximum transaction throughput a block can accommodate, influencing network scalability and transaction fees.