The

Abstract

Density functional theory (DFT) is currently experiencing a golden age. The past two decades witnessed remarkable advances in the general applicability of density functionals in the top rungs of Jacob’s Ladder. Nevertheless, Jacob’s Ladder may have reached its highest rung in terms of dependencies on occupied (rung four) and unoccupied orbitals (rung five). Moreover, the fifth rung is associated with a computational cost far greater than the lower rungs. Another limitation is that each rung includes dozens of different functionals, and at present, there is no clear pathway for systematic improvements within each rung of the ladder. This highlight provides an overview of the exchange–correlation (XC) hole and how it could be used in developing new density functionals. We begin with a brief overview of the current status and challenges in developing better density functionals, followed by the intimate relationship between the XC functional and hole. We present a conceptually simple and computationally economical method for calculating the XC hole and how this method could offer new directions in developing better exchange–correlation functionals.