2017 Tech Rolls Out On Coinbase; Bitcoin Batching Will Help Reduce Network Fees by 50%
Coinbase has announced rolling out Bitcoin Batching for its transactions going forward. The firm posted a blog on March 12 noting that they’ve officially launched this feature and are optimistic it will save users up to 50% in fees.
Despite the extremely volatile crypto market in the past 24 hours, Coinbase proceeded to pioneer Bitcoin Batching within its network. Prior to this development, the exchange has been broadcasting single BTC transactions on the chain but this will now be done in batches. The blog highlighted that the move will not only reduce operation costs but ease congestion on Bitcoin’s network;
“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.”
With this innovation, Coinbase is hopeful of improving the BTC protocol in order to facilitate scalability and reduce processing time. The blog further noted that general Bitcoin network fees will be fairer if transactions were to be executed in a timely fashion.
Stakeholders Reaction to Coinbase BTC Batching
As one would expect, Coinbase users stand to benefit the most from this initiative. The blog said that no action was required from them given the launch; they, however, should start realizing the fee benefits of Bitcoin batching immediately.
Some Bitcoin enthusiasts, on the other hand, have criticized the project on twitter. They said that Coinbase was late to the game as its peer competitors such as Kraken that rolled out bitcoin batching as early as 2017. This tech, while not new, has the potential for privacy issues and has become a somewhat hot topic in the past. According to industry experts, BTC batching exposes the addresses of recipients in that particular batch. One does not necessarily know the exact PII but will have the information that you both received BTC funds from a certain exchange.
Coinbase said that they are currently in the process of integrating both the normal exchange and Coinbase Pro. They, however, added that users who operate on the latter will not feel the effect as they already recover 100% of their network fees.
This was 2 yrs ago, right
— The Bitcoin Hat Guy (@knowbitcoin) March 12, 2020