Multilateral exchange

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A multilateral exchange is a transaction, or forum for transactions, which involve more than two parties.

For example, Alice gives Bob an apple in exchange for an orange, that is a bilateral exchange. A multilateral exchange would involve a third party, for example: Alice gives an apple to Bob who gives an orange to Charles, who gives a pear to Alice.

In the real world, such transactions are spread over time, involve items of different values, and involve many more parties. A special type of accounting is used for this, called mutual credit, or credit clearing.