Shapeshift AG, one of the first major companies to adopt Bitcon'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 ShapeShift to offer customers lower miner fees, while utilizing less transaction space on the network. This upgrade, combined with ShapeShift's integration of Segwit in the fall of 2017, makes it one of the most efficient large-scale Bitcoin network participants.
Through this batching update, ShapeShift is now offering one of the lower miner fees across the industry.
[BTC miner fees as of 22/2/18]
How does batching work?
Batching, a process by which multiple transactions are bundled into one TXID to be collectively transferred on the blockchain, significantly reduces the aggregate number of Bitcoin transactions on the network. This has the consequence of enabling the sender to spend less in mining fees, and enables the broader network to find a lower equilibrium mining fee for confirmed transactions (thereby benefiting all participants of the Bitcoin network).
Prior to batching, ShapeShift would send out each transaction separately. For example, if 10 customers engaged in one transaction, the exchange would send one separate txid for each of those orders. Now, with batching, only one TXID may be necessary; one transaction on the Bitcoin network instead of 10.
Why Should You Care?
If you're a customer, you'll notice significantly lower transaction fees, currently better than any other exchange in the industry.
If you're not a customer, but still use Bitcoin, you'll enjoy lower fees as well, since the entire network will now process several thousand fewer BTC transactions every day (with the same number of users and use).
The ShapeShift team provides our customers and the ecosystem with solutions that continue to better the blockchain community as a whole. We are very happy to offer Batched transactions as one part of our mission 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