No more history is checked other than the last step preceding the new transaction. So the size of a transaction will not increase in the coming years and processing it will still be doable by consumer nodes on basic hardware.
Okay! Thanks for explanation! Now, I understand better. So, this increasing size of blockchain is due to increase number of transctions and blocks. Not increased amount of data hiding within Hash/256 bit digest in bitcoin. Sorry! If I said anything wrong, I'm not a coder. I'm just trting to understand things in better way.
Indeed.
And herein also lies a way to reduce the blockchain size. Since only one step back in the history is required to verify a transaction, anything that came before it can in theory be pruned. That means that large parts of blocks can be removed without losing the power to validate transactions. Of course, you do lose the ability to trace a coin all the way back to its origin if you do this, so there should always be enough nodes that keep the full unpruned blockchain.
+1
Heartily thanks to community for clarifying my doubts!