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Home Glossary B Batching Optimizer

Batching Optimizer

Software tools that consolidate user payments into larger batch transactions, maximizing fee savings and efficiency.
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A batching optimizer is like a Tetris champion that fits payments together in the most space-efficient way. These scripts or software solutions scan pending user withdrawals or scheduled payments, then merge them into as few transactions as possible. This technique drastically cuts fees, especially when network fees are high.

For large exchanges or payment processors, implementing a batching optimizer can translate to significant cost savings over time. It also helps reduce the number of entries in the blockchain, freeing up space for other transactions. However, the aggregator must carefully manage user requests to avoid delays, and must also handle potential privacy trade-offs.

Key takeaways
Automates the creation of combined payments
Improves fee efficiency for high-volume senders
Requires careful timing and privacy considerations
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