How Does Batching Relate to the Concept of a ‘Block Trade’ in Traditional Finance?
A block trade in traditional finance is a transaction involving a large quantity of securities that is negotiated and executed privately, often outside the open exchange, to minimize market impact. Transaction batching in crypto serves a similar function by grouping multiple orders for simultaneous execution.
This grouping hides the size of individual large orders and executes them together, reducing the individual market impact that would otherwise be exploited by front-runners.