What Is the Impact of Transaction Batching on Network Throughput and User Fees?

Transaction batching generally has a positive impact on both network throughput and user fees. By bundling many Layer-2 transactions into a single Layer-1 transaction, the fixed cost of the Layer-1 transaction is amortized across all batched users.

This significantly reduces the individual user's fee. The efficiency of batching also allows the network to process a higher volume of transactions per second, increasing throughput.