Proposal Underway: How Batching Can Revolutionize Tron

Transaction fees are a significant issue for cryptocurrency users, especially for organizations handling large transactions. Transaction batching, a method that combines multiple transactions to improve efficiency and reduce costs, is on its way to the Tron ecosystem through a new proposal. Submitted by Boosty Labs to the CTDG Dev Hub, this change could offer Tron's community a native batching solution, enhancing its scalability and competitiveness in the crypto market.

Key Takeaways

Transaction Fees Challenge: Sending cryptocurrency incurs fees which can be substantial for large-scale users like exchanges and payment processors.
What is Batching?: Batching allows multiple transactions to be combined into a single transaction to reduce fees and increase scalability.
Proposal Details: Boosty Labs has submitted a proposal for integrating batching into Tron, which could bring transformative benefits.
How Batching Works: This method involves grouping transactions offchain, validating them, and submitting them as one onchain transaction.
Improved Usability: The batching system will be designed to accommodate urgent transactions as well as high-volume users.
Positive Impact on Tron: Implementing batching could lower costs for users, simplify processes, and enhance Tron's market position.

Understanding Transaction Batching

Transaction batching is designed to lessen the load on the primary blockchain (main chain). It gathers individual transactions offchain until a specified number is reached, then processes them as a single transaction on the main chain. This technique has been utilized in various blockchain technologies, including Bitcoin's Lightning Network and Ethereum's Layer 2 solutions.

When applied to Tron, the batching process consists of four main steps:

Collect and process transactions offchain, where they are grouped and validated before being compressed into a batch.
Assemble the batch into a single unit with cryptographic proofs to validate each transaction.
Submit only this batch to the Tron mainnet for final checks.
Confirm the batch on the Tron blockchain, permanently adding it to the chain.

Batching Process Steps Source: CTDG Dev Hub

The Unique Approach of This Proposal

Unlike traditional Layer 2 solutions that create separate blockchains, Boosty Labs' proposal keeps all operations connected to the Tron mainnet, eliminating the need for bridges or additional cryptocurrencies.

The batching system offers different pricing options based on the urgency of transactions:

Instant: Immediate settlement at a premium price.
Delayed: Standard fees for transfers with a moderate wait.
Batch: Economical for users willing to wait, aimed at high-volume transactions.

Additionally, an automatic identification system will be implemented to identify users who frequently exceed specific transaction metrics, making them eligible for batching.

Metrics for eligibility include:

Transaction Frequency: Over 50 stablecoin transactions daily.
Volume Threshold: Regular transactions exceeding $10,000.
Distribution Pattern: Transfers to more than 25 unique recipients weekly.

A smart contract will oversee this process and maintain a daily updated whitelist based on actual transaction patterns.

Why Batching is Crucial for Tron

Batching not only reduces transaction costs but also aligns with Tron's identity as a high-volume settlement network. With more than 50% of the global USDT supply on Tron, small improvements in efficiency can lead to significant benefits for the entire ecosystem.

The introduction of native batching enhances Tron's core offering of fast, low-fee transactions, improving its competitiveness in areas like enterprise payments and remittances.

Different user groups will benefit:

Large-Scale Users: Exchanges, payment processors, and businesses can lower costs significantly by paying just one fee per batch.
Validators and Super Representatives: While transaction income might decrease per individual transaction, increased access for users could boost overall network transactions and validator earnings.
Everyday Users: Reducing network congestion and fees allows for smoother transactions during standard operations.
Tron itself: Batching can increase the economic activity the network can handle effectively, thus accommodating higher volumes of transactions in various scenarios like payroll or rewards.

Proposal Launch on CTDG Dev Hub

The batching proposal became active on CTDG Dev Hub on November 14 and is now under review. This phase allows community members, validators, and developers to discuss and provide feedback before formal submission. This initiative marks a significant step in enhancing Tron's core functionality.

If approved, the rollout will occur in phases:

Deploying settlement contract and fee module on the Shasta testnet.
Building aggregator node infrastructure with security audits.
Integrating identification systems and whitelists.
Launching verification tools for community validation.
Transitioning to the mainnet after thorough testing.

The design focuses primarily on stablecoin operations, which are central to Tron's use cases. The proposal seeks to reduce transaction fees to 0.05 TRX per recipient in batches, benefiting users with repetitive stablecoin transfers.

Enhancing the Web3 Public Space

CTDG Dev Hub serves as an incubator, allowing innovative ideas to develop into concrete proposals for Tron. It fosters collaboration among developers and community members, ensuring that discussions are centralized rather than scattered across various platforms. This collaborative approach enhances the quality of proposals by bringing more scrutiny and feedback, ultimately leading to better implementations.

Boosty Labs, the team behind this batching proposal, has designed detailed technical specifications ensuring that suggestions are realistic and ready for practical application.

In the blockchain ecosystem, community engagement is essential not only for maintenance but also for development. CTDG Dev Hub supports this collaborative effort, paving the way for improvements and advancements in the Tron network.