Algorithms have been around for decades. They’re used in everything from search engines to social media. And they’re becoming even more important in finance. Algorithms were designed to optimize solutions and find the patterns that make a huge impact on corporate profits. Interest rates can be lowered through complex algorithms, which allow businesses to offer lower interest rates to borrowers who qualify for them.
Everything we do online – from shopping to banking – is fundamentally driven by an algorithm. Algorithms determine which products appear at the top of search results and which ads appear on which sites. They determine what kind of messages are sent to customers and which actions are taken upon entering a website. Online algorithms have become so sophisticated that they’re revolutionizing many industries while creating new ones.
Why algorithms are so much important?
Imagine that you have 2 Rubik Cube in front of you. One of them you are allowed to use existing algorithms. Like how many times or which direction to turn repeats, something like that. On the other hand, you have to find your own way to arrange the Rubik’s Cube in proper order.
Now tell me which way will be faster? Obviously the first way.
There are already hundreds of well-established algorithms to solve the Rubik’s Cube. And trying to invent your own method to solved will take much longer than replacing the current ones.
What’s that it’s most likely that the method you will choose will be less efficient and slower than the method that already exists. And even worse than that. The method you will invent probably works on the specific configuration of Rubik’s Cube. And considering there are 43 quintillion different configurations, your method hasn’t quite going to do the job if something changes.
Let us take a real-time example.
I’m going to Google search engine. Here, I will search for something like “what is data structures”. When I hit enter for the search. I get this as a result.
Think about what Google search will do when I type something in the search bar and hit enter.
It will find the words “what is data structure” this 3 words in their data server. It will find lakhs of web pages contains this keyboard, Right?
From that list of web pages, Google will give rank for that, based on the google ranking algorithm. So that we are getting the top results on the first page. More than 90 percent of we will get the expected result from Google search, Right?
Just see here the total time taken for this full process. It’s just less than one second.
So Google processed more than lakhs of the pages and sorted them within a short span of time. That’s the power of the algorithms.
Do you think it’s possible to get the same performance without an efficient algorithm? Absolutely not.
I hope you understand the importance of algorithms.