How Does the Block Size Limit Affect Throughput?
The block size limit is the maximum amount of data that can be included in a single block. A smaller block size directly restricts the number of transactions that can be processed per block.
This acts as a bottleneck, limiting the overall transaction throughput of the network. Increasing the block size can boost throughput but may lead to higher hardware requirements for full nodes, potentially reducing decentralization.
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.
Block Size Limit
Constraint ⎊ Block size limit, within cryptocurrency networks, fundamentally dictates the maximum data volume permitted within a single block added to the blockchain.
Block Size
Capacity ⎊ The block size parameter fundamentally dictates the maximum data volume a single block can hold on a blockchain network.
Transaction Throughput
Meaning ⎊ Transaction throughput quantifies the maximum number of transactions a blockchain network can process and validate within a given unit of time, typically measured in transactions per second (TPS).