A process or set of rules to be followed in problem-solving or calculation operations, usually by a computer, although humans tend to follow steps algorithmically as well (let’s say doing math or following a recipe).

Algorithm Meaning


The term “Algorithm” is defined as a set of instructions that are designed in a specific way to perform a specific function.

The algorithm is followed in our day-to-day life as well, from simple tasks to mathematics problems to computer coding everything requires an algorithm.

For example-: a simple mathematics equation such as multiplying two and two. Or coding on a computer.

This is what is known as an algorithm. Let us understand

What is an “algorithm” in crypto space?

Every device runs on a computer or technology functions on the algorithm.

The algorithm is used by all financial institutes for loan pricing, stock trading for liability management, and many other automated programs.

Algorithm trading or what we commonly know as Algo Trading is basically the specification of time, price, and quantity of stock order. Algo trading is mostly used to buy or sell securities through a computer program. Algo trading is also known as automated trading or black-box trading.

Why are “algorithms” necessary? 

-Algorithms are required as they make life easier by cutting down the manual time and instead the computer does the 1-hour work in a few minutes.

-For many institutes, and organizations “algos” save their time and money.

-Allows more proficiency.

What are crypto algorithms? 

Cryptocurrency is encrypted data that denoted currency, which is organized and monitored in a peer-to-peer network called a blockchain. Blockchains are basically secure ledgers for transactions.

A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography.

Cryptocurrency uses various algorithms, and these are known as “Hashing.”

A hash is basically a function that enables the conversion of input of letters and numbers which are then encrypted in a fixed length output.

There are different types of hashing algorithms. They are as followed: 

  1. SHA-256
  2. Ethash
  3. Scrypt
  4. Equihash
  5. Cryptonight
  6. X11

समस्या-समाधान या गणना संचालन के नियमों की एक प्रक्रिया या सेट, जो आमतौर पर एक कंप्यूटर द्वारा होता है, हालांकि मनुष्य एल्गोरिदम के रूप में भी कदमों का पालन करते हैं (जैसा कि गणित करना या किसी नुस्खे का पालन करना)।

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