How Does the ‘SegWit’ Upgrade Affect the Calculation of Block Space?
SegWit (Segregated Witness) changed the block size limit to a 'block weight' limit of 4 million units. It segregated the witness data (digital signatures) from the transaction data.
By counting witness data as 1/4 the weight of regular data, SegWit effectively increased the number of transactions that can fit in a block, thus increasing the effective block space.