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Different blockchains have different block specifications. These specifications determine the characteristics of the blockchain and the performance of the cryptocurrency network it powers.
Blockchain technology is what powers a cryptocurrency network. It provides the decentralized, distributed, and immutable properties that these digital assets are known for. And one of the most critical elements of a blockchain is its individual blocks. A block is like a file or collection of encrypted information about recent transactions.
Network validators verify multiple transactions, bundle them into a block, and add it to the blockchain. Each block added to the blockchain is distributed among the nodes of the network. This makes blockchain data visible to everyone and impossible to tamper with or change.
It is important to note that different blockchains have varying block specifications. These specifications determine the characteristics of the blockchain and the performance of the cryptocurrency network it powers. So follow along as we list and explain some common block specs and how they affect network performance.
block size
Block size refers to the amount of information a block can hold. It is usually measured in megabytes (MB). The larger the block size, the more data each block can store. For example, the block size on the Bitcoin network is 1MB, while that of Bitcoin Cash is 32MB. The limited block size for Bitcoin can be a problem when network traffic increases. Miners can only fit a certain number of transactions into a single block. This leads to longer wait times for transaction confirmations and the need to pay higher gas fees to ensure transactions go smoothly.
Blocking time
This is the average time it takes for a network to add a new block. It is a measure of the time taken by miners or validators within a network to verify transactions, bundle them into a block, and add it to the blockchain. Bitcoin has a block time of around 10 minutes, while Ethereum only takes around 14 seconds.
Block reward
Miners and validators are rewarded each time they add a new block to the blockchain. This is known as a block reward and is usually paid out in the form of the blockchain’s native cryptocurrency. For example, the current block reward for Bitcoin is 6.25 BTC. On Monero it’s 1.26 XMR, and on Dogecoin it’s 10,000 doges. This reward incentivizes miners and validators to keep verifying transactions and adding new blocks to the blockchain.
Block difficulty
Block difficulty only applies to proof-of-work blockchains. It denotes the effort required to mine a block. Blockchain networks constantly update the difficulty level to ensure that block times remain consistent. For example, if block times start to increase, the difficulty will be reduced and vice versa.
block height
Each blockchain is made up of a series of blocks, organized sequentially. Block height is a value that indicates the number of blocks preceding a given block in the blockchain. For example, the first block on Bitcoin, the Genesis block, had a block height of zero. Block height is also a key piece of information for users looking to find transaction details using an explorer.
Block height is also an important lattice marker. It allows project developers to set a time for network upgrades. For example, the highly anticipated Ethereum merger occurred at a block height of 58,750,000,000,000,000,000,000.
Conclusion
Each blockchain has different specifications. Understanding these specifications gives us a better idea of a blockchain’s pros and cons, its future potential, and how it compares to other blockchains. So keep these tips in mind the next time you evaluate a blockchain; they will help you paint a better picture of network capabilities.