In substrate node template we can see that blocks are producing and finalizing if no transaction happening so how I can make my node to only generate blocks when there are transactions happening.


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There are two consensus (or "block authoring" --whichever you prefer to call them) algorithms that might be exactly what you need:

1- Manual seal: Where there is one author and it authors a block whenever you tell it via an RPC call.

2- Instant seal: Where there is one author and it attempts to author a block as soon as it sees a transaction in the pool, most often leading to one transaction per block

There is a substrate seminar where they build a substrate node that uses manual seal and instant seal consensus.

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