ShapeShift (2% of Bitcoin Network) is Now Batching Transactions
Shapeshift AG, one of the first major companies to adopt Bitcoin’s Segwit update last fall, is now batching Bitcoin (BTC) transactions to further reduce costs to customers and improve the health of the Bitcoin network. The digital asset exchange platform, which processes roughly 10,000 Bitcoin orders per day, is now batching nearly all transactions.
This allows us to offer our customers lower miner fees while utilizing less transaction space on the network. This upgrade, combined with the integration of Segwit in 2017, makes ShapeShift one of the most efficient large-scale Bitcoin network participants.
How Does Batching Work?
Batching is a process in which multiple transactions are bundled into one TXID to be collectively transferred on the blockchain, significantly reducing the aggregate number of Bitcoin transactions on the network. Sender’s spend less on mining fees while enabling the broader network to find a lower equilibrium mining fee for confirmed transactions (thereby benefiting all participants of the Bitcoin network).
Prior to batching, we would send out each transaction separately.
For example: if 10 customers engaged in one transaction, the exchange would send one separate txid for each order. But now with batching, only one TXID may be necessary (one transaction on the Bitcoin network versus 10).
Why Should You Care?
- Our customers will you’ll notice significantly lower transaction fees — better than any other exchange in the industry!
- Not a customer yet, but still use Bitcoin? You’ll also enjoy lower fees since the entire network now processes several thousand fewer BTC transactions every day (with the same number of users and use).
We’re grateful that we can provide our customers with solutions that continue to advance the blockchain industry. That’s why we’re thrilled to offer batched transactions as our duty to be responsible stewards of the open source networks on which we operate. Happy Shifting, friends!
Trade any leading digital asset in or out of Bitcoin at www.ShapeShift.io