Batching Efficiency

Batching efficiency refers to how well a protocol groups individual transactions together to be processed as a single unit. High batching efficiency means more transactions are included in each proof, which reduces the per-transaction cost and increases overall throughput.

In the context of derivatives, this means combining thousands of margin updates or trade executions into one block update. This minimizes the frequency of on-chain state transitions and optimizes the usage of block space.

Improving batching efficiency is one of the most effective ways to increase the capacity of a ZKP-based system. It is a core objective for protocol designers seeking to match the performance of traditional financial markets.