ADVANTAGES OF TRANSACTION BATCHING IN TRANSACTIONS WITH PUSS COIN.

in PussFi 🐈2 months ago

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Basically, the rapid evolution of decentralized finance and the innovative features and services that continues to come along with it has basically presented and offered to the users of the cryptocurrency world and market some advanced and frankly unprecedented opportunities but the unfortunate thing now is that with these advanced opportunities comes also some very significant challenges and hurdles to the decentralized finance and the underlying blockchain networks and while the all motto of the cryptocurrency network and its foundation and core is built on the promise of secure, immutable, and transparent transactions however, the practical application often runs into issues of scale.

And as a network’s user base and transaction volume continues to increase and grow, so too can the cost and time and resources associated with processing, executing and completing each individual transfer, this dynamic and concept is often referred to as a "scalability trilemma," pits decentralization, security, and scalability against each other and one of the most effective and widely adopted solutions to this challenge is transaction batching, transaction batching refers to a technique that when implemented is able to powerfully optimize and fundamentally shift the economics and efficiency of a blockchain with transaction batching, instead of processing each transaction as a separate and discrete event, transaction batching groups multiple transfers into a single, cohesive transaction.

This consolidation or this grouping of transactions is a fundamental and strategic means and method or solution that optimizies the efficiency of transaction processing and basically this strategic solution has a cascading effect, which basically leads to significant cost reductions, enhanced network efficiency, and a vastly improved user experience it therefore would not be saying too much, or be overestimating to say that it is an essential strategy for any decentralized platform, to have and implement particularly for those on high throughput networks like Tron, which PussFi (PUSS) utilizes, that aims to handle a high volume of transactions without compromising the core principles of any decentralized network.

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LOWERS COSTS OF PROCESSING TRANSACTIONS.

So one of the most immediate and tangible benefits of implementing the strategic solution of transaction batching is that it facilitates the significant reduction of transaction processing and executing costs, on some and most blockchain networks, transaction fees are not based on the monetary value being transferred but rather on the data size of the transaction itself meaning that each individual transaction that is to be processed requires a certain amount of space on the blockchain, and this space comes with a cost so, when a user sends a single transfer, they must pay for the full data footprint of that transaction, including all the overhead associated with inputs, outputs, and the signature and this is the problem however, with transaction batching, multiple payments are consolidated and bundled into a single one larger transaction and while the batched or consolidated transaction is bigger than a single one, its total data size is significantly smaller than the cumulative size of all the individual transactions it contains.

This is possible because certain things included in the overhead such as the transaction header and the sender's signature is paid only once and not for every single transfer therefore this is what is responsible for significant reduction in the cost of a single consolidated transaction and multiple transactions this is also particularly impactful for platforms that manage a high volume of small payments, such as a gaming platform that basically awards in game items or a social media site that rewards content creators so by consolidating hundreds, or even thousands, of PussFi (PUSS) transactions into a single batch, the platform can spread the cost of one transaction across all of the transfers within it, this fee reduction can be substantial and significant enough that it makes micro transactions economically viable and allowing the savings to be passed on to users and as a result also fostering greater engagement and participation.

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IMPROVING NETWORK EFFICIENCY AND SCALABILITY

In addition to reducing costs, another significant advantage and benefit of transaction batching is seen in the very important role they facilitate and play in improving the overall network efficiency and scalability, this role is considered critical and very important because every blockchain network has a limited capacity for the number of transactions it can process within a particular given timeframe and when the network is congested, individual transactions can become slow and expensive as users compete for limited block space by offering higher fees therefore by consolidating multiple transactions, batching drastically reduces the number of individual "events" that the network's validators or miners need to process for example instead of validating and recording 100 separate transactions, the network only needs to process one batched transaction.

So this basically frees up valuable block space, allowing the network to handle a much higher volume of overall activity without experiencing bottlenecks and congestions and for a network like tron, which is already known for its high transaction per second (TPS) rate, transaction batching further enhances its capability to support a massive number of users and decentralized applications now, this increased efficiency translates to faster confirmation times for all transactions, not just the batched ones, seeing as network congestion is reduced we need scalability because the more scalable and efficient the puss network is the more reliable and resilient it will equally be as well.

CONCLUSION

In conclusion, transaction batching is a very powerful and strategic optimization solution for any highvolume blockchain network and as explained above it functions and operates by consolidating multiple transactions into a single event, it therefore addresses the core challenges of scalability by providing a suitable solution and multiple advantages to the decentralized finance network, blockchain networks and cryptocurrency networks in general and most importantly to the pussfi network.

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