Compact Block Relay

Compact Block Relay is a technique designed to reduce the bandwidth required to propagate blocks across a peer-to-peer network. Instead of sending the full block data, the sender transmits a condensed version containing only transaction identifiers or headers.

The receiving node then reconstructs the full block using its local pool of pending transactions. This method significantly decreases propagation latency and reduces the risk of orphan blocks.

For high-frequency crypto derivative platforms, this is essential for maintaining a competitive and efficient market microstructure. By optimizing data transmission, it allows for faster block dissemination without needing massive increases in network bandwidth.