Coinbase Launches Bitcoin Transaction Batching to Improve Network's Scalability

Ibiam  |  Mar 13, 2020

Leading cryptocurrency exchange, Coinbase recently announced that it has launched Bitcoin transaction batching, which will be applied to both Coinbase and Coinbase Pro, in order to improve the network's scalability.

According to the report, the new feature will significantly decrease the load that the exchange puts on the Bitcoin blockchain. Additionally, the feature could enable users to save more than 50% on network fees.

Coinbase said it usually broadcast a single on-chain transaction, every time a Coinbase customer sent bitcoin. However, will the newly released feature, the exchange plans to bundle several Bitcoin sends into a single transaction. 

In this way, the exchange believes it will end up reducing the amount of load they put on the Bitcoin network by 50% or more, and at the same time, the network fees will automatically be reduced for the customers by an equivalent amount when sending.

Although the bitcoin transaction batching feature might cause a small delay in transactions that are broadcasted to the network, it will have no impact on the required time for a transaction to be confirmed for customers at the regular rate. Meanwhile, this feature requires no action from users.

The Need For Bitcoin Transaction Batching

bitcoin transaction

According to the report, the bitcoin transaction batching is another way to support and make the cryptocurrency more usable, since it will free up more space on the blockchain, and lower the network fees. 

Historically, one of the many obstacles to the usability of the world's most valuable digital currency, Bitcoin, is scalability. This represents the rate by which the network can be able to process transactions. Coinbase said the feature would help the system by increasing transaction throughput.

Coinbase Enables Support For Short Addresses

Coinbase, which is ranked as one of the most secure cryptocurrency exchanges, has been introducing new services to make the cryptocurrency much convenient. Recently, it launched support for personalized wallet usernames, enabling users to transfer digital currencies to short addresses.

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