Batching on the Rise, Driving Bitcoin Transaction Fees Lower

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When bitcoin transaction fees hit record costs in mid-to late-2017, a race for solutions was in force. The most workable one came in the form of batching bitcoin transactions, and batching’s popularity has increased in the background of a general bear market that started in early 2018.

Technical Underpinnings of Batching

At the time, it was noticed that blocks were not used to their fullest potential. This inefficiency led to higher fees across the network. As CCN reported, the Coinbase exchange was called out for dragging their feet on batching, which increased the fees everywhere since Coinbase engaged in massive transaction volume.

Miners are limited to 2MB worth of transactions per block, which also creates the economic gain for them. Batching relieves fee costs because multiple transactions in a single block take up less space than if they were spread across multiple blocks….