Batching transactions refers to the process of combining multiple transactions into a single one before broadcasting them to the network. This approach is commonly used to improve efficiency and reduce costs. When individual transactions are processed separately, they can incur higher fees and take more time to confirm. By batching them, users can save on transaction fees since they only pay for the data included in one combined transaction.

This is especially beneficial during high-traffic periods when network congestion can lead to higher fees. Furthermore, batching helps reduce the load on the blockchain, as fewer transactions need to be processed.

This can lead to faster processing times for all users. In practical terms, batching can be employed by wallets and services that handle multiple transactions, allowing them to optimize their operations while benefiting users with lower fees and quicker confirmations. Overall, it represents a more efficient way to manage and process transactions in a decentralized ledger environment.