Coinbase says batching bitcoin transactions has saved clients 75% in fees

Layer 1s • August 11, 2020, 4:29PM EDT

Crypto exchange Coinbase said it has saved its customers 75% in transaction fees by batching bitcoin transactions since early 2020, according to a blog post published Tuesday.

The announcement comes five months after the exchange rolled out Bitcoin transaction batching on both Coinbase and Coinbase Pro, batching all bitcoin send requests on the platforms.

The feature reduces the load on the Bitcoin blockchain network by bundling multiple customer send requests into a single transaction, rather than creating a new transaction for each request. This leads to a reduction in transaction fees. According to Coinbase, 100% of these savings go directly to the customer.

The exchange also said it has reduced its number of daily transactions by 95%.

"This transaction count reduction is beneficial for the network as a whole, and should help lower fees for all Bitcoin users," the blog post stated.

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Saniya More (pronounced: Saan-ya Mo-ray) is a quadrilingual journalist at The Block. She got her master’s degree from the Columbia University Graduate School of Journalism and did her undergraduate degree at the S.I. Newhouse School of Public Communications, Syracuse University. Her work has appeared in CBS News, Bangkok Post, Thai Enquirer, Globalists, Byline Times and other publications. When she’s not chasing a story, you will most likely find her biking, tweeting, taking photos or creating Spotify playlists for every occasion.