Batch transaction processing refers to the method of grouping multiple transactions together and processing them as a single unit. This approach enhances efficiency and reduces the costs associated with transaction fees.

When several transactions are combined into a batch, they can be processed in one go, saving time and resources. This is especially beneficial during times of network congestion, as it minimizes the number of individual entries that must be confirmed. In addition to improving speed, batch processing can also enhance scalability.

By handling multiple transactions simultaneously, it allows networks to serve more users and manage higher volumes of activity without straining infrastructure. Lastly, this method offers greater privacy for users, as individual transaction details are less easily traced when they are hidden within a larger batch. Overall, batch transaction processing plays a crucial role in making the system more efficient and user-friendly.