Algorithm: Foundation of Digital Systems and Blockchain

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What is an algorithm?

An algorithm represents a sequence of ordered operations that allow for the accomplishment of a specific task or the resolution of a determined issue. Designed as a set of explicit instructions, it guides computer systems in executing multiple functionalities. These instructions can vary significantly in complexity: from elementary calculations like subtracting two values, to sophisticated operations such as determining the optimal route between different geographical areas.

Areas of Application

Although algorithms are primarily studied in computer science and mathematics, their scope extends far beyond. They can be found in biological neural networks, in electronic equipment, and are crucial elements of modern digital infrastructures. Their utility is asserted in many sectors: performing complex calculations, manipulating massive data, or assisting in strategic decision-making.

Structure and Functioning

Each algorithm has a well-defined starting point and endpoint. Based on specified inputs and according to a series of predetermined steps, it generates measurable results. The combination of multiple algorithms allows for the completion of more elaborate tasks, although the increase in complexity requires more computing power.

Evaluation Criteria

To compare different algorithms regardless of the programming language or hardware infrastructure used, computer scientists rely on asymptotic analysis, a rigorous mathematical method. Two essential dimensions characterize an algorithm:

  • Accuracy: its ability to correctly solve the given problem with precision
  • Efficiency: the computing resources and time required to complete the task

Algorithm in Blockchain

On the blockchain front, the proof of work algorithm (PoW) embodied by Bitcoin plays a fundamental role. This algorithm ensures the verification and validation of transactions, guarantees the security of the network, and maintains its optimal functioning. PoW demonstrates how an algorithm can be repurposed from its traditional applications to create revolutionary consensus mechanisms within decentralized systems.

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