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Cryptocurrency News Articles

The growing adoption of inscriptions on Bitcoin could push the average block size to 4MB, according to a report released on February 4th by Mempool Research. This significant evolution occurs in a context where the debate over the use of the Bitcoin netwo

Feb 05, 2025 at 06:05 pm

The Bitcoin network is currently undergoing a major expansion phase. According to a new report from Mempool Research, the average size of its blocks now exceeds 1.5 MB, a significant increase since the Taproot update of 2021.

The growing adoption of inscriptions on Bitcoin could push the average block size to 4MB, according to a report released on February 4th by Mempool Research. This significant evolution occurs in a context where the debate over the use of the Bitcoin netwo

The growing adoption of inscriptions on Bitcoin could lead to an increase in the average block size to 4 megabytes (MB), according to a report released on February 4th by Mempool Research. This significant evolution occurs in a context where the debate over the use of the Bitcoin network echoes the old “block wars” that divided the community between 2015 and 2017.

Bitcoin block size now exceeds 1.5 MB on average

The Bitcoin network is currently undergoing a major expansion phase. According to a new report from Mempool Research, the average size of its blocks now exceeds 1.5 MB, a significant increase since the Taproot update of 2021. This growth is primarily explained by the success of “Inscriptions,” a technical innovation that allows the integration of various types of data into the Bitcoin blockchain. Researchers have already observed blocks reaching 2.4 MB, and this trend could continue up to 4 MB per block if the adoption of inscriptions continues to accelerate.

“We are considering different scenarios for evolution,” the report specifies. “Either a return to moderate growth as before the inscriptions, or a rapid expansion to 4 MB per block if their use becomes widespread.” In this latter case, the Bitcoin blockchain could reach a size of one terabyte between 2026 and 2029.

A transforming ecosystem in the face of competition

The evolution of block size is part of a broader transformation of the Bitcoin ecosystem. Since Taproot, the network has seen the emergence of native decentralized exchanges and layer 2 scaling solutions, significantly enhancing its initial capabilities. This technical expansion comes at a pivotal moment, as native decentralized finance of Bitcoin is expected to be one of the most promising sectors for 2025. The acceleration of institutional adoption and the maturation of the DeFi ecosystem on Bitcoin support this trend.

However, Bitcoin faces increased competition from alternative blockchains. Networks like Solana, capable of handling 128 MB blocks, or Celestia, aiming for gigabyte storage, offer significantly superior storage capabilities, enabling more complex transactions at lower costs.

The Echo of the Block Wars

This technical evolution revives the memory of the “block war” that divided the Bitcoin community between 2015 and 2017. At that time, two camps opposed each other: the supporters of “big blocks” who wanted to increase capacity to reduce transaction fees, and the advocates of “small blocks” prioritizing network decentralization. Current debates on inscriptions and BRC-20 tokens raise similar questions regarding the optimal use of blockchain space. While increasing block size allows for more innovations like NFTs and smart contracts, it also raises concerns about transaction costs and network accessibility for small users.

In summary, the major difference with the historical debate lies in the fact that Bitcoin’s technical architecture is now better established, with scaling solutions like Lightning Network. The market will ultimately decide the value of these new use cases, within the technical limits defined by community consensus.

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Other articles published on Feb 06, 2025