Block size limit refers to the maximum amount of data that can be included in a single block on a blockchain. Each block contains transaction information and is added to the blockchain in a linear sequence. When the block size is limited, it affects the number of transactions that can be processed at one time.

Larger block sizes can accommodate more transactions, potentially reducing fees and speeding up confirmation times. Conversely, smaller block sizes can lead to network congestion, resulting in higher fees and longer wait times for transaction confirmations.

Different blockchain networks have varying block size limits, influenced by factors such as security, decentralization, and scalability. For instance, Bitcoin has a block size limit of 1 megabyte, while other networks, like Bitcoin Cash, increased their limits to facilitate higher transaction volumes.

Debates around block size limits can lead to forks or splits in the blockchain, where the community diverges on the best approach to handle scaling issues. Ultimately, the block size limit plays a crucial role in determining a network’s efficiency and usability.