What Is the Impact of Transaction Batching on Merkle Tree Efficiency?
Transaction batching, where multiple transactions are grouped together before being included in a block, significantly improves Merkle Tree efficiency. By reducing the number of individual transactions, the Merkle Tree becomes shallower.
This means that a Merkle Proof, which is required for verification, is smaller and requires fewer hashing operations. Batching also helps to reduce overall network congestion and transaction costs.
Glossar
Merkle Tree
Architecture ⎊ A Merkle Tree, within cryptocurrency and derivatives, functions as a cryptographic verification tool, efficiently summarizing and securing large datasets of transaction information.
Transaction Batching
Transaction ⎊ The aggregation of multiple cryptocurrency, options, or derivatives transactions into a single, consolidated unit for processing and settlement.
Batching
Strategy ⎊ Batching is a strategic approach in financial systems where multiple individual operations are grouped together for collective processing.