How Algorithms Work in Practice

At the heart of modern technology are algorithms—sets of systematic instructions that guide computing systems to complete tasks and solve problems. However, the role of algorithms extends far beyond traditional information systems—they appear in various environments, including biology, electronics, and cryptography.

From Recognition to Execution

Algorithms are not just theoretical constructs—they are practical solutions that guide programs to perform tasks of varying levels of complexity. An algorithm can carry out a basic operation, such as subtracting two numbers, or handle complex problems—such as finding the most favorable route among multiple geographical locations. Each algorithm has a clear starting and ending point, producing results based on the input data and predefined procedures.

Evaluation and Comparison

The quality of an algorithm is measured through two main criteria: correctness and efficiency. Correctness refers to whether the algorithm accurately solves the given problem. Efficiency focuses on the computational resources and time required to complete a task. Computer scientists use mathematical analysis methods, known as “asymptotic analysis,” in order to compare different algorithms regardless of the programming language or hardware characteristics.

Algorithms and Blockchain: The Example of Bitcoin

In the field of blockchain, Bitcoin's Proof of Work algorithm serves as a vital system for the mining process. This algorithm performs three critical functions: validating and formulating transactions, enhancing the security of the network, and ensuring that the system operates according to its specifications. This illustrates how algorithms play an irreplaceable role in the functioning of distributed networks and cryptography.