Batching refers to the practice of grouping multiple transactions into a single operation. This is commonly used to improve efficiency and reduce costs associated with processing transactions on a blockchain.

By combining several transactions, the network can save on the fees that would normally be incurred for each individual transaction. This means that users can often enjoy lower costs, especially when sending funds to multiple recipients at once. Batching also helps in reducing the overall load on the network, leading to faster processing times.

In addition to cost savings and efficiency, batching enhances privacy. When multiple transactions are grouped, it can be more challenging for outside observers to dissect individual transactions and link them to specific users. This added layer of anonymity can be advantageous for users who prioritize privacy in their transactions. Overall, batching is a useful technique that streamlines the transaction process, making it more efficient, economical, and discreet.