Pathfinding

Short Description:

Pathfinding is the process of finding a good exchange rate by comparing different chains of cross-currency trades.

Main Description:

Pathfinding is the process of finding a good exchange rate by comparing different chains of cross-currency trades. In cryptocurrency and blockchain systems like XRPL, pathfinding algorithms are used to discover better exchange rates for transactions that involve multiple currencies or assets. It may be that USD -> CAD has a worse exchange rate than USD -> EUR -> CAD. By pathfinding and considering various options, local market variability has less of an impact on the exchange rate traders can use.