Coinbase, the largest cryptocurrency exchange, recently launched a new feature on its website to save users money on transaction fees.
Exchange will immediately start bidding Bitcoin (BTC) transaction batching for its customers, according to a blog post published by the exchange on March 13.
The move made by exchange, which “requires no customer intervention,” will allow single on-chain cryptocurrencies transactions to be bundled into one. The exchange predicts that this will reduce the load on the BTC network and that customers will pay the resulting fees for sending money.
Coinbase’s move to save 50% on transaction fees
Eli Haims, Product Manager at Coinbase, described the move as one that users could save on transaction fees for. The transaction costs will be reduced by an equal amount by rising the load on the network by more than 50%.
“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.”
The average price for transactions on the BTC network is currently around $0.30 according to CoinMetrics.
Transaction Was Long Planned Feature
For exchange this new function has been in the works for some time. CEO Brian Armstrong tweeted in June 2019 that the introduction of transaction batching was “embarrassing how long it has taken”.
While batching will now be available on both Coinbase and Coinbase Pro systems, others were quicker on the uptake. U.S.-based crypto exchange Kraken and Switzerland-based ShapeShift also provide transaction batching services.