The Working Blockchain

As stated before, the protocol is unbounded, and blocks can accommodate vast quantities of data and transactions. As the network grows, it will become increasingly impractical for users to need to manage the full blockchain in order to interpret their own situation. Thankfully, in sections 7 and 8 of the Bitcoin white paper, entitled 'Reclaiming Disk Space' and 'Simplified Payment Verification' respectively, there are defined solutions that allow every entity connected to the network to manage only the data that they need to manage, rather than all of the data at once.