How Does Transaction Batching Help to Reduce the Overall Gas Costs for Users?

Transaction batching reduces overall gas costs by amortizing the fixed cost of an L1 transaction over multiple individual L2 transactions. Instead of each user paying the full cost to submit their transaction to L1, the sequencer bundles hundreds of L2 transactions into a single L1 transaction.

The total L1 gas cost is then divided among all the batched users, significantly reducing the per-transaction fee for each user.