# Compacting Blocks and UTXO Storage

<figure><img src="/files/G5NO6jGg1TzC4o4CdDHm" alt=""><figcaption></figcaption></figure>

*Old blocks can then be compacted by stubbing off branches of the tree. The interior hashes do not need to be stored.*

Satoshi Nakamoto, Bitcoin Whitepaper

The process of **compacting blocks** involves the removal of unnecessary data from the blockchain, specifically the interior hashes of the Merkle tree that are no longer needed.

As transactions are pruned, nodes can focus on storing only the **Unspent Transaction Outputs (UTXOs)**, which are essential for validating new transactions. This approach allows nodes to streamline their operations by reducing the amount of historical data they need to manage. By keeping only the relevant UTXOs, nodes can maintain **a leaner and more efficient database**, which is crucial for the scalability of the network.


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