What Is the Block Size Limit and How Does It Enforce Scarcity in Block Space?
The block size limit, often measured in "weight units" (WU) post-SegWit, restricts the total data capacity of each new block on the blockchain. By capping the supply of transaction space, it creates artificial scarcity.
This scarcity is the primary driver of the competitive transaction fee market, as users must bid against each other to secure limited space.
