Coinbase Rolls Out BTC Transaction Batching to Cut Network Fees

Coinbase, a US-based crypto exchange, announced on Thursday the launch of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term transaction batching, reducing the load on the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term 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.