Bitcoin
Bitcoin
BTC
$97,706.00
1d: +0.46%
7d: +2.71%
$97,706.00
+0.46%
Ethereum
Ethereum
ETH
$1,860.59
1d: -0.13%
7d: +2.87%
$1,860.59
-0.13%
Polkadot
Polkadot
DOT
$4.22
1d: +0.80%
7d: -1.95%
$4.22
+0.80%
Solana
Solana
SOL
$151.05
1d: -0.81%
7d: -1.24%
$151.05
-0.81%
XRP
XRP
XRP
$2.23
1d: -0.68%
7d: +1.33%
$2.23
-0.68%
Shiba Inu
Shiba Inu
SHIB
$0.00001366
1d: -0.29%
7d: -2.51%
$0.00001366
-0.29%

Algorithm

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Table of contents
  1. 1. Why Algorithms Matter in Crypto

An algorithm in crypto is simply a set of rules a computer follows to solve problems or make decisions automatically. In blockchain, algorithms are everywhere — they decide how transactions are verified, how blocks are added, how prices are calculated, and even how tokens are distributed.

Different blockchains use different algorithms. Bitcoin uses a Proof of Work (PoW) algorithm that requires miners to solve math puzzles. Other networks like Solana use Proof of Stake (PoS) algorithms, where validators are chosen based on the number of tokens they hold. Algorithms also drive smart contracts, trading bots, and decentralized finance (DeFi) protocols.

Because they are rule-based and predictable, algorithms help create the transparency and automation that crypto and blockchain are known for. However, if badly designed, they can lead to exploits, vulnerabilities, or unfair advantages.

Why Algorithms Matter in Crypto

Algorithms power the automation behind crypto — making sure systems are secure, decentralized, and efficient without needing middlemen. They’re the invisible engines driving almost everything in Web3.