Elastic Block Size

Elastic Block Size is a feature of modern blockchain protocols that allows the maximum amount of data in a block to expand or contract based on network demand. By setting a target block size, the protocol can increase the limit during high-traffic periods to accommodate more transactions.

This flexibility prevents extreme spikes in gas fees while ensuring that the network remains functional under stress. However, larger blocks can increase the hardware requirements for nodes, potentially impacting decentralization.

Balancing the elasticity of block space with the need for network security is a key challenge in protocol design.