Coinbase, a US-based crypto exchange, announced on Thursday the launch of Bitcoin transaction batching, reducing the load on the blockchain and thus saving network fees by almost 50 percent.
“Starting today, we will be bundling multiple sends into a single transaction,” Eli Haims, product manager at the exchange, stated in the announcement. “we anticipate that this will reduce our load on the Bitcoin network by more than 50%, and the network fees our customers pay will automatically be reduced by an equivalent amount when sending.”
The exchange also pointed out that with this feature, the customers might see a minor delay in broadcasting a transaction to the network. However, it will not impact the time it takes for transactions to be confirmed at the normal rate for customers.
Making the network scalable
This, per Coinbase, will take off the load from Bitcoin’s blockchain as it is already facing issues with scalability and high network fees for processing transactions.
“During periods of high activity on the network, Bitcoin users compete to have their transactions processed, outbidding each other via network transaction fees,” Haims added.
“This has led to days when the median network fee for a single transaction was over $30. The size of this fee rendered Bitcoin impractical for low-value transactions. Currently, daily median network fees on the Bitcoin network are ~$0.30 for a transaction.”
Coinbase believes that batching the transactions will free up space on Bitcoin blockchain, increasing transaction throughput, and scalability.
To stay ahead in a competitive crypto exchange market, Coinbase is introducing many customer-friendly features.
Last month, Coinbase Wallet introduced a feature, allowing its users to send digital currencies using usernames.
Brian Armstrong, CEO of the US-based exchange, also obtained a patent for sending Bitcoins over emails.