Coinbase began to group BTC transactions to reduce fees and network load

The American exchange Coinbase began grouping transactions for BTC withdrawal to reduce the load on the blockchainBitcoin and reduce the size of commissions, which have grown significantly this week.

As the company says, the introduction of “bundling”will help reduce the load on the Bitcoin blockchain due to the large number of transactions coming from the exchange. In addition, grouping transactions will reduce fees for customers, it said.

“We expect this to reduce our workloadBitcoin network by more than 50%, and the transaction fees our customers pay will also be reduced by almost half," — Coinbase Product Manager Eli Haims wrote on the exchange's blog.

Batching has already been started, and the exchange warns that this functionality will cause a “slight delay” when sending transactions to the network, but will not affect the time required to confirm them.

Reduced network load and feesoccurs by reducing the number of transactions that must be processed by a limited number of computers that support Bitcoin. Traditional and cryptocurrency markets experienced strong declines this week, triggered by the coronavirus pandemic, which hit the global economy seriously.

At the same time, some Bitcoin miners beganstop production because the price of cryptocurrency has dropped sharply. This led to higher fees as investors and traders initiated large numbers of transactions during the sell-off. Ethereum users were also hit by lower markets — the volume of commissions for transactions on the network increased by 400%.

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