Batching in cryptocurrency refers to the process of combining multiple transactions into a single transaction. This is commonly done to optimize the use of blockchain space and reduce network congestion. By batching transactions, users can save on fees and improve the efficiency of the overall system.
When making a transaction, the sender can include multiple outputs in a single transaction, allowing them to send funds to multiple recipients in one go. This reduces the number of individual transactions being processed on the blockchain, which in turn speeds up the confirmation time for all transactions involved.
Batching is particularly useful for cryptocurrency exchanges, payment processors, and large users who regularly make multiple transactions. By combining transactions into batches, they can save on fees and streamline their operations. Overall, batching is an important technique for improving the scalability and efficiency of blockchain networks.
