Algorithm

An algorithm is a sequence of instructions designed to perform a specific task or solve a problem. The use of algorithms is widespread in the digital world, without them the solutions providing spot feedback known today would not exist or would serve fewer customers much more slowly.

The concept of the algorithm already existed in ancient times, the ancient Babylonian mathematicians also dealt with it, so it is not specifically an IT concept. For example, we can look at a food recipe as an algorithm, where the exact, specific steps, the practical instructions for each step and the amount of the necessary ingredients are described in order. The specific feature of the algorithm is that it always consists of a specific, finite number of steps that are well prepared and tested in advance.

Another simple example of an algorithm is sorting random numbers in a list in ascending or descending order, or finding the largest number. To solve it, you need to see all the numbers at the same time and perform the following steps:

first you have to check if there is a number in the list at all. 

If there is a number, then we assume that the first number is the largest, and then we compare the following numbers to see if they are greater than the one we thought was the largest so far (this is the first at the beginning), 

if the number is greater than the previous largest, then it is placed forward until the numbers are arranged in a row.

Moving between different parts of the process is not necessarily deterministic. What comes next is not defined in advance. So the algorithm is not a script, but also has decision points where it can branch. 

The advantage of algorithms is that they make life easier for both users and system operators. You don't need to perform all related tasks manually over and over again. In areas that require a very fast reaction time, algorithms significantly surpass the efficiency and effectiveness of human work. All software consists of a multitude of algorithms. Computer programs are actually integrated algorithms.

A very important aspect of algorithms is how optimally they are written, since the same result can be reached in several ways from the same resources. The goal of the programmers is to achieve the profit as quickly as possible, with the least amount of resources and computing capacity. 

The world of fintech, cryptocurrencies or stock exchanges is a good example of the increase in efficiency achieved by the use of algorithms and software bots. Similar to these, online advertising marketplaces dealing with programmatic advertising are also based on algorithms.