The growing adoption of “inscriptions” on the Bitcoin network could increase the average block size to up to 4 megabytes (MB), according to a report by Mempool Research published in February 2025. Currently, the average block size on Bitcoin is slightly above 1.5 MB, but this new technology could transform the network’s scalability.
What Are Inscriptions?
“Inscriptions” refer to an efficient method of encoding arbitrary data within a Bitcoin block. This process allows for additional data storage without compromising the network’s security. With widespread adoption, this technique could significantly increase block sizes, directly impacting scalability and transaction efficiency.
For comparison, other blockchains, such as Solana, already have a much higher theoretical storage capacity, with blocks capable of holding up to 128 MB.
The Impact of the Taproot Upgrade
Since the implementation of the Taproot upgrade in 2021, some Bitcoin blocks have already stored up to 2.4 MB of data. However, Bitcoin’s theoretical maximum block size is 4 MB. According to the Mempool Research report, Bitcoin’s blockchain could reach 1 terabyte of total storage as early as the end of 2026, though the period between 2027 and 2029 is considered more likely.
The Taproot upgrade also brought more flexibility to the Bitcoin network, enabling more complex activities, such as token creation and NFT minting. This expansion has increased Bitcoin’s competitiveness with other blockchains that offer larger block capacities.
Can Bitcoin Compete with Other Networks?
Despite these advancements, Bitcoin still faces strong competition from networks that offer larger block space, allowing for faster transactions and lower user costs. Celestia, for example, a Layer 1 blockchain specializing in data availability, has already announced plans to scale its blocks to 1 gigabyte.
With the adoption of inscriptions, Bitcoin could significantly increase its processing capacity, ensuring its position as the leading blockchain network in the world. However, its growth will depend on the adoption of these new technologies and the evolution of the crypto ecosystem in the coming years.