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Does Bitcoin Core or any other full node capable client compress the blocks in transit on the network or locally on the node's filesystem?

I used 7z to compress a handful of my locally stored blocks, and I got 50% compression!

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    not that I know, but this would be a good side project to do
    – vincenzopalazzo
    Commented May 23 at 20:08
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    No compression is currently used. See this answer with more references.
    – WhoIsNinja
    Commented Jul 18 at 4:23

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I dont think they compress blocks or transaction data in any way, I used Utreexod full node, they sent the whole blocks in raw form and it was saved as it is on my local machine, just in a different file format.

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