The Recent Folders file folders extension tracks automatically which folders you have been visiting recently and keeps the the list of shortcuts to those folders so that you could get back to them instantly in a single click. This resembles the browsing history in your web browser: you can quickly return to a web page you visited some time ago if circumstances require.
Most of file manager programs (including Windows Explorer itself) offer such service; however, the browsing history is available either while the window remains open or in that particular file manager only.
Instead, Actual Tools program keeps the browsing history globally, no matter which program you have used the folder in. This means that, for example, you can open the document in Microsoft Word from some folder, switch to Microsoft Excel and then jump there to the same folder using the Recent Folders history.
You can adjust the Recent Folders options on the Recent Folders panel. The list of recent folders can be invoked by clicking the special title button. When enabled, this button will be added to the title bar of any supported window.