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so,

One of Bitcoin’s weirdest engineering tricks! 🎩✨

Bitcoin did increase the block size with SegWit in 2017 but they can’t officially call it that because of backward compatibility with old nodes.

👉 It’s still called a "1 MB block" for old nodes.

👉 It actually stores up to ~4 MB of data.

👉 This works because Bitcoin Core changed how block space is "counted" (Weight Units instead of bytes).

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Discussion

dangershony 11mo ago

For old nodes it still is 1mb, they will only receive 1mb of data, all the extra data is the witness data for SegWit (old nodes can't validate that data) and it can get striped away before it is sent to old nodes.

It is indeed a brilliant trick because it is backwards compatible decentralisation.