- Coinbase has announced a new feature of Bitcoin Transaction Batching on its wallet platform.
- Bitcoin Transaction batching will reduce the transaction fees up to 50%.
Coinbase has announced a new feature of Bitcoin Transaction Batching on its wallet platform. This is a feature which will decrease the load that Coinbase delivers on the Bitcoin’s Blockchain Network which is an advantage for both company and the user where it will reduce the transaction fees up to 50%.
Previously whenever a customer sent Bitcoin from Coinbase wallet, the transaction was made on single on-chain transaction but with the new feature of Bitcoin transaction Batching multiple transactions will be made in a single transaction. By this added feature, Coinbase plans to deliberately decrease the network fees by 50% and the fees that the senders or customers will be paying will be automatically reduced to an equivalent amount when sending.
How Coinbase transaction batching will Work?
There is no additional requirement of any input from the senders to make this transaction. There will be a slight catch where there will be a little time delay for the transaction to appear on the Network and it will not affect the time taken in confirming the transaction which will happen at the same rate that occurred previously.
This new feature was released to ensure the scalability factor of Bitcoin and improve the usability of Bitcoin’s open protocol. Similar to the traditional payment services, to make a Bitcoin transaction, a network fee has to be paid to facilitate the networks which help in confirming the transaction through cryptographic code.
During the Network busy usually, due to increased transactions, the users outbid each other via transaction fees so that their transaction will be made which has led to increase in median network fee to over $30, so to decrease the load and especially the transaction fee, the new feature has been rolled out both on Coinbase and Coinbase Pro.
It is a single transaction that fulfils multiple users send requests which occupies less space in each block than each being processed individually. Each of these blocks has a fixed capacity (in bytes). One is created every 10 minutes (Average).
This is just another step taken by Coinbase increase user experience and facilitation, and the company is keen to take the next set of challenges and solve them.