@emiliaer

Pathfinding algorithms optimize multi-hop blockchain payments by selecting efficient routes across liquidity networks. Dijkstra’s algorithm, widely used for shortest-path problems, struggles with dynamic blockchain conditions like fluctuating fees and liquidity. Adaptive algorithms, such as A* with real-time fee heuristics, improve success rates by 30% in simulations. However, they require frequent network state updates, increasing computational overhead. Layer-2 solutions, like state channels, reduce reliance on pathfinding by minimizing on-chain hops. Balancing speed, cost, and reliability remains critical, as inefficient routing can lead to failed transactions or excessive fees in decentralized finance (DeFi) ecosystems.

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