Pathfinding On The XRP Ledger

Pathfinding refers to the process of finding the most efficient route for making cross-currency payments or exchanging assets, on the XRP Ledger.

Pathfinding uses a routing mechanism that considers factors like trust lines, liquidity, fees, and more to determine the best route. When a user wants to make a transaction, the pathfinding algorithm evaluates available routes based on these factors to find the most efficient and cost-effective payment paths. By utilizing pathfinding, XRP Ledger users can benefit from enhanced liquidity, reduced transaction costs, and optimized value flow within the network.

For example, Pathfinding enables users to spend GateHub USD to deliver XRP to somebody who can only receive XRP.

References:
https://xrpl.org/paths.html
https://github.com/XRPLF/rippled/blob/master/src/ripple/app/paths/Pathfinder.cpp
https://gatehub.net/blog/xrp-ledger/