Bitcoin block size may reach 4 MB with increased inscriptions

Recent research indicates that the average block size of Bitcoin (CRYPTO:BTC) could potentially grow to 4 megabytes (MB) with the widespread adoption of inscriptions.

According to a report from Mempool Research published on February 4, Bitcoin's current average block size is slightly over 1.5 MB.

Inscriptions, which allow for the efficient encoding of arbitrary data within a block, could significantly increase this size if embraced by a larger segment of the network.

The report highlights that Bitcoin’s block size has been a critical factor in its scalability challenges.

In contrast, competing blockchain networks like Solana can theoretically accommodate up to 128 MB per block, showcasing a significant difference in capacity.

Following the Taproot upgrade in 2021, some Bitcoin blocks have already reached sizes of up to 2.4 MB.

Mempool Research outlines various growth scenarios for Bitcoin's blockchain, ranging from slower growth returning to pre-inscription dynamics to rapid expansion driven by the adoption of inscriptions.

The report suggests that under favorable conditions, the blockchain could reach a total size of 1 terabyte (TB) as early as late 2026, although mid-2027 to 2029 is considered more likely.

Bitcoin has evolved from a simple payment protocol into a platform supporting more complex activities, including decentralised finance (DeFi) and non-fungible tokens (NFTs).

However, it faces competition from other networks that offer greater block space and lower transaction costs.

At the time of reporting, the Bitcoin (BTC) price was $98,227.54.