Coinbase Saves Users 50% in Fees, Introducing Bitcoin Transaction Batching

Recently major cryptocurrency exchange Coinbase revealed a new feature on its platform — Bitcoin (BTC) transaction batching — which will help users save money on transaction fees.

In its March 13 blog post, Coinbase stated that it would offer Bitcoin transaction batching for users immediately.

The move undertaken by Coinbase, which “requires no action from customers” will allow several single on-chain transactions of cryptocurrencies to be blended into one. The exchange expects that it will reduce the load on the Bitcoin network and the resulting fees users need to pay for transactions.

Saving users 50% on transaction fees

Eli Haims, Coinbase Product Manager, said that the new feature is the one for which clients could save on transaction fees. If the network load is reduced by over 50%, the transaction fees will decrease by an equivalent amount:

“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.”

CoinMetrics data shows that the average transaction fee for Bitcoin network is now around $0.30.

Coinbase planned transaction batching long ago

The new feature has been developed by Coinbase for some time. In June 2019, CEO Brian Armstrong tweeted that it was “embarrassing how long it has taken” to release transaction batching for Bitcoin network.

Though batching will now be available for both Coinbase and Coinbase Pro platforms, others adopted the idea more quickly. U.S.-based crypto exchange Kraken and Switzerland-based Shapeshift already provide transaction batching.