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Learn PATH

The ideas behind the protocol, in the order that makes them easiest to hold — what breaks today, how the pieces fit, and why the directory is the one part that cannot be fully open.

This section explains the protocol. The Docs section explains how to implement it.

Read these in order if PATH is new to you. Each page assumes the one before it, and the whole sequence is about an hour.

The shortest possible summary

PATH standardises the handful of things that have to cross an organisational boundary before value can move:

QuestionPillar
Who are you?PATH ID
Where do I send, and on what standing terms?PATH ADDRESS
What is owed, to whom, until when?PATH REQUEST
Who is allowed to act, within what limits?PATH CONNECT
How is the outcome proven?PATH SETTLEMENT

Everything else — rails, custody, pricing, screens, the ledger, the licence — stays with the operator. That boundary is not modesty. A protocol that also specified how to run a payment company would be implemented by nobody, because no two payment companies are run the same way.

One thing to keep in mind while reading

Two claims run through every page, and they only look contradictory until you separate them:

The protocol is open. Every format is public, implementable without asking anyone, and testable by a third party.

A directory is not. Being listed in one means exposing a resolvable pointer to your customer base, and institutions do not do that without reciprocity, contract and audit.

Both are true at once, and the card industry has run on exactly that arrangement for decades: ISO 8583 is an open specification, Visa is a closed network, and nobody finds it strange. Networks and members is the page that unpacks it.

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