Transaction Aggregation

Definition ∞ Transaction aggregation is the process of combining multiple individual transactions into a single, larger transaction or batch before processing. This technique aims to reduce network congestion, lower transaction fees, and improve overall system efficiency. It is commonly employed in payment systems and blockchain scaling solutions. Such methods optimize resource usage.
Context ∞ In cryptocurrency networks, transaction aggregation is a key scaling solution, particularly for Layer 2 protocols or rollups, to handle higher transaction volumes. News reports often discuss the implementation of aggregation techniques to improve blockchain throughput and user experience. The adoption of these methods is vital for the widespread utility of decentralized applications.