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LFSR usually use in stream cipher. I have an idea to use it in block cipher algorithm. is it bad or good idea?
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LFSRs are not secure, so if you plan to use them as is in a block cipher don't. If you plan to use them as a defusion layer then ok but it doesn't add more security.
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Grain is a 80 bit LFSR based stream cipher. In order to perform correlation attack, Fast walsh algorithm is used in deriving the linear approximation equations. The algorithm reduces the computations to 2^80 to a particular value (smaller than 2^80).
How to choose the value?
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Two related transforms on a Boolean function f of order n are used: the Fourier-Hadamard (FH) and Walsh (W). FH linearly maps f to the real valued function \hat{f}(u)= \sum_{x\in\mathbb{F}_2^n}(-1)^{f(x)\oplus u . x} where u.x is the inner product. When applied to the sign function f_\chi (x)=(-1)^f(x), FH corresponds to W. Details can be found in C. Carlet. Boolean Functions for cryptography and error-correcting codes. Technical report, University of Paris 8, 2011