A batch transaction refers to the practice of grouping multiple transactions together into a single operation. Instead of processing each transaction separately, which can be inefficient and costly, batch transactions allow users to combine several transactions into one.

This approach reduces the overall fees and improves processing time. In many blockchain networks, each transaction requires a fee, typically paid to miners or validators. By batching transactions, users can share the cost of a single fee across multiple transactions, making it more economical.

Additionally, batching can help to decrease the load on the network, leading to faster confirmations. Batch transactions are particularly useful for businesses or services that handle numerous transactions, like payment processors or exchanges. By reducing congestion on the network and decreasing transaction costs, batch processing enhances the overall efficiency of cryptocurrency operations.