What Is the Maximum Capacity of a Bitcoin Block and How Does It Relate to Mempool Congestion?
The effective maximum capacity of a Bitcoin block is 4 megabytes (MB) under the SegWit upgrade, though the base block size remains 1MB. This is measured by 'weight units' (WU) rather than pure size.
When the total size of pending transactions in the Mempool exceeds the capacity of the blocks being mined, congestion occurs. The limited block space creates competition, driving up transaction fees as users bid for inclusion.