Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

What Is An Algorithm

An algorithm is a sequence of instructions that provide a result to a specific problem in a finite time. The approach used to get the result can be either mathematical or logical but their steps should be in the right order. Think of an algorithm for wearing shoes, you cannot wear socks on shoes, the order is important.

What Is An Algorithm Used For?
Algorithms are used in information technology and by developers to write programs. When a developer writes a program, it is essentially giving a set of commands to the computer to perform an operation to get results. A programming language is used as a bridge to communicate as the machine does not understand the human language. The programmer writes a sequence of instructions called the programming algorithm and the programming language converts into a language that the machine understands.

Programming Algorithm
A programming algorithm is akin to a recipe which describes exact steps to cook a dish. Similarly, a computer will need exact steps to provide a solution to a problem. Following the same recipe example, a recipe contains ingredients followed by cooking instructions. An algorithm is also like that where the recipe is called the procedure in the computer world and the ingredients can be associated with inputs to the procedure. The computer follows the procedure and the results are displayed as the outputs. The algorithm tells the computer how to do something and it does it the same way every time. It is essential to know that the algorithm is different from a code and is written in plain English and is an unambiguous list of instructions which gives solutions. Some people also use a diagram to mention the steps and is called a flowchart.

Characteristics Of An Algorithm
All procedures cannot be called an algorithm. The following characteristics distinguish it from a procedure.
Clear instructions: The instructions should be clear and every step should have a well-defined input and output.
Input/Output: An algorithm can have 0 or more inputs but should be properly defined. It can have one or more than one outputs.
Effective: The operations that are defined in the algorithm should be basic and can be done in a given time. The number of steps should be finite and should be able to provide the results with the resources available. It should be able to be executed independently and not attached to another piece of code.

Most Famous Algorithms:
Google’s PageRank:
Most used algorithm in the world which lists the order in which the search results are displayed.
Facebook Timeline: This is the algorithm that feeds the Facebook timeline with contents of the most visited based on user preference and previous history.
Trading algorithm: Used by many financial institutions, it provides real-time data based on market conditions.
Round-Robin: This is the algorithm which helps to determine the top priority tasks when the machine has to perform many jobs at once.

Algorithms are the life-line of powerful technologies such as AI or machine learning and also virtual assistants and self-driving cars hence essential to know the fundamental concepts.