[DigitalToday reporter Yoonseo Lee] XRP Ledger's major payments upgrade, "Batch V1.1", is nearing mainnet activation. The feature processes multiple accounts' transactions as a single bundle, and is expected to widen use cases such as institutional payments and multi-party settlement.

On Sept. 20 (local time), blockchain media outlet U.Today reported that the amendment has entered a two-week period in which it must maintain support for activation. If it keeps support above 80 percent during that period, it is expected to be applied to the mainnet on Sept. 29.

Batch V1.1 is an alternative amendment reflecting a revised batch implementation included in xrpld v3.3.0. It secured support above the 80 percent activation threshold on Sept. 15, and current support stands at 85.71 percent. XRP Ledger activates an amendment if it meets the threshold for two consecutive weeks and permanently reflects the changes in the ledger's transaction processing rules.

The core of the amendment is a function that bundles multiple transactions generated across several accounts and processes them within the same ledger close. Atomic processing using Batch (XLS-56) follows an "all-or-nothing" approach in which all bundled transactions are completed or all are cancelled. If any internal transaction fails, the entire batch is rolled back to prevent only some transactions from being executed.

The feature is used for tasks that require two or more participants to complete transactions simultaneously without relying on trust. Examples include atomic swaps, coordinated settlement and atomic multi-party settlement. It can also reduce concerns about execution-order trust issues and partial execution in institutional work that requires two or more accounts to move at the same time, such as custody transfers, delivery versus payment (DvP) and completing cross-border payments.

Potential use in institutional payments has also been discussed. In custody asset transfers, delivery versus payment (DvP) and cross-border payments, transactions across multiple accounts must be interlinked. In that process, issues can arise over which side executes first and whether the counterparty will perform as promised. The batch function is designed to reduce such trust burdens, conflicts tied to execution order and the risk that only some transactions are completed by processing transactions together.

The scope of use for developers and service providers is also expected to expand. Batch has been presented as a foundation for implementing, without separate smart contracts, transaction structures of programmable blockchains such as multicall that bundles multiple calls, atomic bundles that process transactions in bulk and flash loans. It also includes an aim of lowering the entry barrier for new developers.

Decentralised exchanges (DEX), wallets and marketplaces can bundle user payments and platform fee payments into a single batch. This is a way to design a service monetisation structure by linking fees to basic transactions.

Still, the actual rollout schedule depends on whether support is maintained during the remaining period. Whether it will stay above 80 percent and be activated as planned, and how much it will be used in institutional payments and service development after that, will be watched closely.