Batch processing refers to the method of grouping multiple transactions together to be processed at the same time. Instead of handling each transaction individually, this approach allows for a collection of transactions to be executed in one go.

This method increases efficiency by reducing overhead costs associated with processing each transaction separately. It can also help lower transaction fees, as fees may be distributed across the entire batch, making it more economical for users. In many blockchain systems, batch processing can enhance the overall speed of the network by enabling miners or validators to confirm multiple transactions simultaneously.

This can lead to faster transaction times and improved scalability, addressing one of the critical challenges faced by various blockchain platforms when the volume of transactions surges. Overall, batch processing plays a vital role in optimizing transaction handling, ensuring smoother operations, and providing a better user experience in the ecosystem.