Batching algorithms are methods used to group multiple transactions together before processing. This approach enhances efficiency by reducing the number of individual transactions that need to be verified and recorded on a blockchain.

By combining several transactions into a single batch, the algorithm minimizes the data overhead and reduces the overall fees incurred. This is especially useful during periods of high transaction volume, as it alleviates network congestion and lowers costs for users. In addition to cost savings, batching improves transaction speeds since one batch can be processed as a single unit.

This is beneficial for both users and miners, as it streamlines the workload and resource utilization. Batching is commonly employed in various applications, including exchanges and payment processors, to optimize transaction processing and enhance the overall user experience.