- Coinbase introduced its new Bitcoin Batching feature to the world on Thursday.
- Low network fee and set free the overuse of the batches on transactions is the objective on whole.
- This move was anticipated by many. Now when its a reality, are all on cloud nine?
After a long wait, the coinbase users finally heard a piece of good news on Thursday 12 of March 2020. The platform announced it’s a new feature, Bitcoin Batching. No doubt it’s not the first platform to roll out this feature but always it’s better late than never.
Coinbase, a digital currency exchange platform set forth its new feature ‘Bitcoin Batching’ on Thursday. The San-Fransisco based company planned to add this feature back in 2018 but delayed due to some reasons.
The new utility is announced for both Coinbase and Coinbase Pro. According to the Coinbase Pro manager, Eli Haims, this feature will help in the high productibility of the system. It would reduce the load on the system assembled by single transactions at a time. And as a result high transaction fees.
He stated,” We anticipate that this will reduce our load on the Bitcoin network by more than 50 percent, and the network fees our customers pay will automatically be reduced by an equivalent amount when sending.’’
‘’Supporting transaction batching is one way that Coinbase can help make Bitcoin more usable by lowering network fees overall and freeing up space on the blockchain. This enables the network to increase transaction throughput, and helps to increase scalability,’’ he added.
What is Batching and how it works?
Now first let’s understand what Batching is! As we all well aware that the transactions in BLockchain Technology are carried out in the form of Blocks. Each block bears a transaction with a unique Hash identity.
Batching is a method used to place as many transactions as possible into the limited block space available on Bitcoin’s blockchain. It is important because combining multiple outputs and payments into a single operation is space and cost-efficient.
Batching has become very popular in recent years. The lower the transaction fees, the higher the rate of batching.
Some Users not in joy!
Although this was a fine move, it was not welcomed humbly by the folks all around. The reason was pretty clear, a long delay!!
As mentioned above, other exchange platforms like Bitfinex, Kraken, and Shapeshift have already implemented when it was required, that’s when fees where high. Now when fees are declining, users criticized the move showing their displeasure on delay.
According to data from Byte Tree shared in a tweet, transaction fees on average over the last five weeks were around 74 U.S. cents, but an hourly average sometime Thursday saw that climb to almost $2 on average.
Coinbase is a digital currency exchange headquartered in San Francisco, California. They broker exchanges of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Tezos, and many others, with fiat currencies in approximately 32 countries, and bitcoin transactions and storage in 190 countries worldwide.