Newbie question about blockchain length

[aes1]

I just downloaded the official bitcoin client and waited it for synchronize (took LONG).

I realized it consumed 7 gigs of space in the end! So my take is that it downloaded every single transaction in history. Am I right?

What's going to happen when the popularity explodes (as it seems to do)?

[DannyHamilton]

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I realized it consumed 7 gigs of space in the end! So my take is that it downloaded every single transaction in history. Am I right?
- snip -

Yes.

What's going to happen when the popularity explodes (as it seems to do)?

The blockchain will get bigger.

[RodeoX]

It may someday require action, and there are several options if needed.

[Gabi]

Yup, every transaction.

In the future? Maybe a pruning system will be added, there are some possible options