American exchange Coinbase began to batch BTC withdrawal transactions to reduce the Bitcoin blockchain load and lower the fee size, which rose this week significantly.
The company declared launching the “batching” will help reduce the Bitcoin blockchain load due to the large number of transactions the exchange provides. Besides, according to the company’s report, batching transactions will lower transaction fees for the customers.
Eli Haims, a Coinbase product manager, wrote in the exchange’s blog about their expectation considering this measure to reduce their load on the Bitcoin network by at least 50% and transaction fees their customers had to pay also to be almost halved.
Batching has already been launched, and the exchange notifies this option may cause a ‘slight delay’ at the moment of sending transactions to the network but will not affect the confirmation time.
Reducing the network load and fee size is achieved due to the decreased number of transactions to be processed by the limited number of Bitcoin-supporting computers. During this week, traditional and cryptocurrency markets experienced a sharp decline, caused by the coronavirus pandemic that seriously hit the global economy. At the same time, some Bitcoin miners began to shutdown their mining facilities, because the cryptocurrency price dropped sharply. This cause an increase in the fee size due to investors and traders made a large number of transactions when selling their assets. Ethereum users also suffered from the markets decline as the online transaction fee value rose by 400%.
