maxSaleen, you've got it exactly wrong.
An engine block that leaks heat through good thermal properties of its material is leaking energy that should be going into pushing the pistons.
Ideally the material would not absorb any heat at all, and hence all energy would go into super-heating the gasses causing them extra expansion and hence kinetic energy to the pistons.
The reason we cool an engine block is due to the fact that metal does have a low specific heat and metal also has a degree of thermal expansion.
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