It is a dynamic routing algorithm in which each router computes distance between itself and each possible destination i.e. its immediate neighbors.
The router share its knowledge about the whole network to its neighbors and accordingly updates table based on its neighbors.
The sharing of information with the neighbors takes place at regular intervals.
It makes use of Bellman Ford Algorithm for making routing tables.
Problems – Count to infinity problem which can be solved by splitting horizon. – Good news spread fast and bad news spread slowly. – Persistent looping problem i.e. loop will be there forever.