Major cryptocurrency exchange Coinbase introduced a new feature on its platform, that enables users to save on transaction fees.
According to the official blog post, the update allows bundling multiple sends into a single transaction. The reduced load on the bitcoin network is automatically affecting transaction fees, which can be decreased by more than half, says Coinbase product manager Eli Haims:
We anticipate that this will reduce our load on the Bitcoin network by more than 50%, and the network fees our customers pay will automatically be reduced by an equivalent amount when sending.
Like traditional payment systems, all Bitcoin transactions are required to pay a processing fee. During periods of high activity, users compete to have their transactions processed, outbidding each other via network transaction fees. This can lead to volatile price jumps, which can be impractical for low-value transactions. Currently, an average fee for transactions on the Bitcoin network is around $0.30.
The new feature requires no action from customers. Although there will be a small delay in a transaction, it will not impact the time it takes for transactions to be confirmed at the normal rate for customers, adds Coinbase.
Bitcoin transaction batching will be applied to both Coinbase and Coinbase Pro.
To make network more scalable
Coinbase believes, that transaction batching 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”, Haims noted. She believes, scalability is still a major obstacle for Bitcoin adoption.
To stay ahead in a competitive market, Coinbase is introducing many updates to its platform, one of them allowing users to send virtual money via the usernames.