A batch system records many small purchases during a period and later settles their net or grouped value. Off-chain receipts or vouchers can preserve an itemized payment trail while only the aggregate result reaches the underlying settlement network.
Batching improves efficiency but creates an interval of unsettled exposure. The system needs trusted accounting, escrow or credit limits, tamper-resistant records, participant identity, reconciliation, and rules for failure or dispute before the batch closes.
ELI5
Batch settlement waits and combines many small payments into fewer final transfers. It is like putting several tiny purchases on one tab and settling the total later instead of paying a network fee for every item.
For example, an agent could receive signed vouchers for many data calls and settle them together at the end of an hour. The system must keep accurate records and limit exposure while those purchases remain unsettled.
