Definition ∞ Multi-hop routing is a method for sending payments or data across a network by relaying them through several intermediate nodes or channels. Instead of a direct connection, the transaction travels along a path of connected participants until it reaches its final destination. This technique is particularly relevant in payment channel networks, such as the Lightning Network, where direct channels between all users are impractical. It enhances network reach and efficiency by utilizing existing liquidity paths.
Context ∞ Multi-hop routing is a key area of development and discussion for scaling solutions in blockchain technology, especially for micro-payments and high-frequency transactions. News often covers advancements in routing algorithms and the challenges of maintaining privacy and reliability across multiple hops. Improving the robustness and speed of multi-hop routing is essential for the practical adoption of these layer-two payment systems.