How Does the Concept of ‘Block Space’ Limit the Number of Transactions Included?
Each blockchain has a maximum block size or a maximum Gas Limit per block, which defines the total capacity for transactions in a single block. Since transactions vary in size and computational complexity (Gas usage), this limit caps the total number that can be included.
This scarcity of 'block space' is the primary driver of the fee market, as users must compete for inclusion.
Glossar
Computational Complexity
Algorithm ⎊ Within cryptocurrency derivatives and options trading, computational complexity fundamentally dictates the feasibility and efficiency of pricing models, risk management strategies, and automated trading systems.
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.
Maximum Block Size
Capacity ⎊ Maximum Block Size, within cryptocurrency networks, defines the upper limit of transaction data contained within a single block on the blockchain; this parameter directly influences transaction throughput and network scalability, impacting the speed and cost of processing transactions.