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- The largest US crypto exchange, Coinbase, revealed a feature that it has been using to reduce BTC fees.
- Coinbase did it through batching BTC transactions, which is basically combining them into one transaction.
- The move allowed the exchange to reduce fees by 75%, as well as the number of transactions per day by 95%.
Crypto transactions are an excellent alternative to traditional payments for a number of reasons. They are almost instant, including international payments, and they have much lower fees. But, with that said, Bitcoin transactions are still too expensive, especially when it comes to the crypto standard.
However, Coinbase crypto exchange, found a way to help traders save up to 75.2% in fees, simply by batching Bitcoin transfers.
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How does it work?
In a blog post published yesterday, August 11th, Coinbase explained that it has been batching BTC transactions since early 2020. The result is that it managed to save its customers up to 75.2% in transaction fees.
Apparently, the exchange has been practicing this for the last five months, ever since it rolled out batching on Coinbase and Coinbase Pro, alike.
The feature is rather simple, but also very efficient. It reduces the load on BTC’s network by packaging send requests from multiple users, and creating a single, large transaction. That way, transaction fees per user can be reduced significantly. Coinbase also claims that all of these savings go directly to the customers.
Coinbase is helping customers, as well as BTC network
According to Coinbase, the transaction count per day was also reduced by as much as 95%, which is extremely beneficial for Bitcoin’s blockchain.
The exchange concluded that transaction batching is a highly successful feature, from which Coinbase customers could benefit greatly. However, it also helps the entire Bitcoin network. It is not exactly a real scaling solution, as it doesn’t improve what the Bitcoin network can do.
However, it can reduce the number of transactions that the network has to deal with, which leads to the same result of shorter waiting periods and extremely cheap transactions.