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What is an Algorithm and How It Shape Our World?

What is an Algorithm and How It Shape Our World?

Author
Arpit Mishra
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September 2, 2016
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4 min read
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"For someone who doesn't watch many matches, Elihu Feustel makes a million dollars by winning bets simply by using algorithms"

Algorithms have revolutionized our world as we know it.

Today, a lot of things come to us a lot more easily than before. We have moved forward from the age of waiting to hear our favorite song on the FM radio and recording it on a cassette. Now, we visit YouTube to play your favorite song. It miraculously recommends all your favorite songs in the auto playlist.

When you visit IMDB’s website, it suggests the most relevant movies every time. When you Google something, you see the most relevant information on the first page. Have you ever wondered how each website knows exactly what to show you?

Algorithms.

We have advanced so much that we can create a painting that one cannot distinguish from the works of an artist who died in 1669!

We are talking about the new 3D-printed Rembrandt painting. Developers created an algorithm to collect data from portraits painted by Rembrandt. This data was then used to create a new 3D-printed painting, which took over 500 hours of rendering.

What is an algorithm?

“A process or set of rules followed in calculations or other problem-solving operations, especially by a computer”. At the simplest level, it is a procedure for accomplishing a task or solving the problem.

How algorithms shape our world every day

Algorithms are everywhere—sports, computer gaming, finance etc. Let us take a look at a few examples.

Healthcare: Algorithms help in areas where healthcare had no effective treatment. From matching appropriate organs to mining data for matching symptoms. They complement some of the most proficient doctors across the globe.

In 2013, 4500 former footballers filed lawsuits against the NFL for concussion-related injuries. This issue came into the limelight when Hall of Famer, nine-time Pro Bowler, Mike Webster and a few other players were diagnosed with Chronic Traumatic Encephalopathy (CTE). The effects of repeated blows to the head cause CTE. Head injuries in sports like American football

1.6 to 3.8 million sports-related concussions occur annually in the United States. To this day, there are no effective tests/scans to detect this disorder. Sanford Health studied common symptoms of the disorder and developed a concussion-evaluation algorithm, which detects the signs and symptoms of CTE. Now, because of timely treatment and precautions, the effects of concussions are prevented in more players. Until an effective test or scan is developed, algorithms are the answer to detecting CTE in time.

Sports: The sports industry today is the result of what has moved from intuition to statistics. It is a big game of algorithms from the Duckworth-Lewis method in cricket to the ranking players by using the Elo rating in the game of chess.

Algorithms also dominate the world of sports betting. So when you see weird numbers like 12/25 for ManU and 17/25 for Arsenal, you can rest assured that they are correct. The complex mathematical concept of the Poisson distribution equation is the foundation to the sports betting. This concept is used to generate numbers in sports betting.

Let’s take the example of Elihu Feustel, who makes almost a million dollars a day by betting on tennis. You would think that he would recognize Serena Williams if he passed by her on the street. However, this isn’t the case, he neither recognizes any of the famous tennis players nor does he know their playing styles etc. So, just how does he know who to bet on? He relies on a big data model that the live betting market uses. This algorithm collects data from existing (almost 260,000) matches. This data is then manipulated to allow users to determine which player/match they should bet on.

It seems like it’s all out of this world, right?

Gaming: It's amazing how videos and computer games have evolved over the last 2 decades. We started with DOS games, Super Mario, Pac-Man, and went on to highly-advanced games like Need for Speed, Counter-Strike, and DotA.

The games are now getting more realistic, with life-like surroundings, smarter and scarier anti-heroes. There is an increased advancement in Augmented Reality (AR) and Virtual Reality (VR) technologies. We are now developing techniques to bring in games that require player involvement at an epidemic rate. This has led to the development of algorithms that are highly complex in nature to create complex games.

Finance: The financial world has not remained untouched by algorithms. Like the Rothschild

'Algorithms' - A word used by programmers when they do not want to explain what they did.

pigeon story of 1815

Helped Rothschild build a financial empire that’s going strong even today, the prediction in the field of finance needs to be quick and accurate. Black Box trading uses advanced and complex mathematical models to figure trading strategies for the most ideal returns. In stock markets, you have to make quick decisions. By 2011, algorithms governed 70% of the US stock market.

There is no doubt that irrespective of the field that you choose, algorithms have a strong influence on our lives and they are changing our world.

Soon there is a possibility that algorithms will take over most of the tasks done by human beings. This could lead to the creation of mundane jobs, which algorithms cannot do, such as stocking bottles, collecting blood samples, and other work that requires physical effort.

Until then, put your algorithm skills to test with these programming challenges.

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Arpit Mishra
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September 2, 2016
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4 min read
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Vibe Coding: Shaping the Future of Software

A New Era of CodeVibe coding is a new method of using natural language prompts and AI tools to generate code. I have seen firsthand that this change makes software more accessible to everyone. In the past, being able to produce functional code was a strong advantage for developers. Today,...

A New Era of Code

Vibe coding is a new method of using natural language prompts and AI tools to generate code. I have seen firsthand that this change makes software more accessible to everyone. In the past, being able to produce functional code was a strong advantage for developers. Today, when code is produced quickly through AI, the true value lies in designing, refining, and optimizing systems. Our role now goes beyond writing code; we must also ensure that our systems remain efficient and reliable.

From Machine Language to Natural Language

I recall the early days when every line of code was written manually. We progressed from machine language to high-level programming, and now we are beginning to interact with our tools using natural language. This development does not only increase speed but also changes how we approach problem solving. Product managers can now create working demos in hours instead of weeks, and founders have a clearer way of pitching their ideas with functional prototypes. It is important for us to rethink our role as developers and focus on architecture and system design rather than simply on typing code.

The Promise and the Pitfalls

I have experienced both sides of vibe coding. In cases where the goal was to build a quick prototype or a simple internal tool, AI-generated code provided impressive results. Teams have been able to test new ideas and validate concepts much faster. However, when it comes to more complex systems that require careful planning and attention to detail, the output from AI can be problematic. I have seen situations where AI produces large volumes of code that become difficult to manage without significant human intervention.

AI-powered coding tools like GitHub Copilot and AWS’s Q Developer have demonstrated significant productivity gains. For instance, at the National Australia Bank, it’s reported that half of the production code is generated by Q Developer, allowing developers to focus on higher-level problem-solving . Similarly, platforms like Lovable enable non-coders to build viable tech businesses using natural language prompts, contributing to a shift where AI-generated code reduces the need for large engineering teams. However, there are challenges. AI-generated code can sometimes be verbose or lack the architectural discipline required for complex systems. While AI can rapidly produce prototypes or simple utilities, building large-scale systems still necessitates experienced engineers to refine and optimize the code.​

The Economic Impact

The democratization of code generation is altering the economic landscape of software development. As AI tools become more prevalent, the value of average coding skills may diminish, potentially affecting salaries for entry-level positions. Conversely, developers who excel in system design, architecture, and optimization are likely to see increased demand and compensation.​
Seizing the Opportunity

Vibe coding is most beneficial in areas such as rapid prototyping and building simple applications or internal tools. It frees up valuable time that we can then invest in higher-level tasks such as system architecture, security, and user experience. When used in the right context, AI becomes a helpful partner that accelerates the development process without replacing the need for skilled engineers.

This is revolutionizing our craft, much like the shift from machine language to assembly to high-level languages did in the past. AI can churn out code at lightning speed, but remember, “Any fool can write code that a computer can understand. Good programmers write code that humans can understand.” Use AI for rapid prototyping, but it’s your expertise that transforms raw output into robust, scalable software. By honing our skills in design and architecture, we ensure our work remains impactful and enduring. Let’s continue to learn, adapt, and build software that stands the test of time.​

Ready to streamline your recruitment process? Get a free demo to explore cutting-edge solutions and resources for your hiring needs.

Guide to Conducting Successful System Design Interviews in 2025

What is Systems Design?Systems Design is an all encompassing term which encapsulates both frontend and backend components harmonized to define the overall architecture of a product.Designing robust and scalable systems requires a deep understanding of application, architecture and their underlying components like networks, data, interfaces and modules.Systems Design, in its...

What is Systems Design?

Systems Design is an all encompassing term which encapsulates both frontend and backend components harmonized to define the overall architecture of a product.

Designing robust and scalable systems requires a deep understanding of application, architecture and their underlying components like networks, data, interfaces and modules.

Systems Design, in its essence, is a blueprint of how software and applications should work to meet specific goals. The multi-dimensional nature of this discipline makes it open-ended – as there is no single one-size-fits-all solution to a system design problem.

What is a System Design Interview?

Conducting a System Design interview requires recruiters to take an unconventional approach and look beyond right or wrong answers. Recruiters should aim for evaluating a candidate’s ‘systemic thinking’ skills across three key aspects:

How they navigate technical complexity and navigate uncertainty
How they meet expectations of scale, security and speed
How they focus on the bigger picture without losing sight of details

This assessment of the end-to-end thought process and a holistic approach to problem-solving is what the interview should focus on.

What are some common topics for a System Design Interview

System design interview questions are free-form and exploratory in nature where there is no right or best answer to a specific problem statement. Here are some common questions:

How would you approach the design of a social media app or video app?

What are some ways to design a search engine or a ticketing system?

How would you design an API for a payment gateway?

What are some trade-offs and constraints you will consider while designing systems?

What is your rationale for taking a particular approach to problem solving?

Usually, interviewers base the questions depending on the organization, its goals, key competitors and a candidate’s experience level.

For senior roles, the questions tend to focus on assessing the computational thinking, decision making and reasoning ability of a candidate. For entry level job interviews, the questions are designed to test the hard skills required for building a system architecture.

The Difference between a System Design Interview and a Coding Interview

If a coding interview is like a map that takes you from point A to Z – a systems design interview is like a compass which gives you a sense of the right direction.

Here are three key difference between the two:

Coding challenges follow a linear interviewing experience i.e. candidates are given a problem and interaction with recruiters is limited. System design interviews are more lateral and conversational, requiring active participation from interviewers.

Coding interviews or challenges focus on evaluating the technical acumen of a candidate whereas systems design interviews are oriented to assess problem solving and interpersonal skills.

Coding interviews are based on a right/wrong approach with ideal answers to problem statements while a systems design interview focuses on assessing the thought process and the ability to reason from first principles.

How to Conduct an Effective System Design Interview

One common mistake recruiters make is that they approach a system design interview with the expectations and preparation of a typical coding interview.
Here is a four step framework technical recruiters can follow to ensure a seamless and productive interview experience:

Step 1: Understand the subject at hand

  • Develop an understanding of basics of system design and architecture
  • Familiarize yourself with commonly asked systems design interview questions
  • Read about system design case studies for popular applications
  • Structure the questions and problems by increasing magnitude of difficulty

Step 2: Prepare for the interview

  • Plan the extent of the topics and scope of discussion in advance
  • Clearly define the evaluation criteria and communicate expectations
  • Quantify constraints, inputs, boundaries and assumptions
  • Establish the broader context and a detailed scope of the exercise

Step 3: Stay actively involved

  • Ask follow-up questions to challenge a solution
  • Probe candidates to gauge real-time logical reasoning skills
  • Make it a conversation and take notes of important pointers and outcomes
  • Guide candidates with hints and suggestions to steer them in the right direction

Step 4: Be a collaborator

  • Encourage candidates to explore and consider alternative solutions
  • Work with the candidate to drill the problem into smaller tasks
  • Provide context and supporting details to help candidates stay on track
  • Ask follow-up questions to learn about the candidate’s experience

Technical recruiters and hiring managers should aim for providing an environment of positive reinforcement, actionable feedback and encouragement to candidates.

Evaluation Rubric for Candidates

Facilitate Successful System Design Interview Experiences with FaceCode

FaceCode, HackerEarth’s intuitive and secure platform, empowers recruiters to conduct system design interviews in a live coding environment with HD video chat.

FaceCode comes with an interactive diagram board which makes it easier for interviewers to assess the design thinking skills and conduct communication assessments using a built-in library of diagram based questions.

With FaceCode, you can combine your feedback points with AI-powered insights to generate accurate, data-driven assessment reports in a breeze. Plus, you can access interview recordings and transcripts anytime to recall and trace back the interview experience.

Learn how FaceCode can help you conduct system design interviews and boost your hiring efficiency.

How Candidates Use Technology to Cheat in Online Technical Assessments

Impact of Online Assessments in Technical Hiring In a digitally-native hiring landscape, online assessments have proven to be both a boon and a bane for recruiters and employers. The ease and...

Impact of Online Assessments in Technical Hiring


In a digitally-native hiring landscape, online assessments have proven to be both a boon and a bane for recruiters and employers.

The ease and efficiency of virtual interviews, take home programming tests and remote coding challenges is transformative. Around 82% of companies use pre-employment assessments as reliable indicators of a candidate's skills and potential.

Online skill assessment tests have been proven to streamline technical hiring and enable recruiters to significantly reduce the time and cost to identify and hire top talent.

In the realm of online assessments, remote assessments have transformed the hiring landscape, boosting the speed and efficiency of screening and evaluating talent. On the flip side, candidates have learned how to use creative methods and AI tools to cheat in tests.

As it turns out, technology that makes hiring easier for recruiters and managers - is also their Achilles' heel.

Cheating in Online Assessments is a High Stakes Problem



With the proliferation of AI in recruitment, the conversation around cheating has come to the forefront, putting recruiters and hiring managers in a bit of a flux.



According to research, nearly 30 to 50 percent of candidates cheat in online assessments for entry level jobs. Even 10% of senior candidates have been reportedly caught cheating.

The problem becomes twofold - if finding the right talent can be a competitive advantage, the consequences of hiring the wrong one can be equally damaging and counter-productive.

As per Forbes, a wrong hire can cost a company around 30% of an employee's salary - not to mention, loss of precious productive hours and morale disruption.

The question that arises is - "Can organizations continue to leverage AI-driven tools for online assessments without compromising on the integrity of their hiring process? "

This article will discuss the common methods candidates use to outsmart online assessments. We will also dive deep into actionable steps that you can take to prevent cheating while delivering a positive candidate experience.

Common Cheating Tactics and How You Can Combat Them


  1. Using ChatGPT and other AI tools to write code

    Copy-pasting code using AI-based platforms and online code generators is one of common cheat codes in candidates' books. For tackling technical assessments, candidates conveniently use readily available tools like ChatGPT and GitHub. Using these tools, candidates can easily generate solutions to solve common programming challenges such as:
    • Debugging code
    • Optimizing existing code
    • Writing problem-specific code from scratch
    Ways to prevent it
    • Enable full-screen mode
    • Disable copy-and-paste functionality
    • Restrict tab switching outside of code editors
    • Use AI to detect code that has been copied and pasted
  2. Enlist external help to complete the assessment


    Candidates often seek out someone else to take the assessment on their behalf. In many cases, they also use screen sharing and remote collaboration tools for real-time assistance.

    In extreme cases, some candidates might have an off-camera individual present in the same environment for help.

    Ways to prevent it
    • Verify a candidate using video authentication
    • Restrict test access from specific IP addresses
    • Use online proctoring by taking snapshots of the candidate periodically
    • Use a 360 degree environment scan to ensure no unauthorized individual is present
  3. Using multiple devices at the same time


    Candidates attempting to cheat often rely on secondary devices such as a computer, tablet, notebook or a mobile phone hidden from the line of sight of their webcam.

    By using multiple devices, candidates can look up information, search for solutions or simply augment their answers.

    Ways to prevent it
    • Track mouse exit count to detect irregularities
    • Detect when a new device or peripheral is connected
    • Use network monitoring and scanning to detect any smart devices in proximity
    • Conduct a virtual whiteboard interview to monitor movements and gestures
  4. Using remote desktop software and virtual machines


    Tech-savvy candidates go to great lengths to cheat. Using virtual machines, candidates can search for answers using a secondary OS while their primary OS is being monitored.

    Remote desktop software is another cheating technique which lets candidates give access to a third-person, allowing them to control their device.

    With remote desktops, candidates can screen share the test window and use external help.

    Ways to prevent it
    • Restrict access to virtual machines
    • AI-based proctoring for identifying malicious keystrokes
    • Use smart browsers to block candidates from using VMs

Future-proof Your Online Assessments With HackerEarth

HackerEarth's AI-powered online proctoring solution is a tested and proven way to outsmart cheating and take preventive measures at the right stage. With HackerEarth's Smart Browser, recruiters can mitigate the threat of cheating and ensure their online assessments are accurate and trustworthy.
  • Secure, sealed-off testing environment
  • AI-enabled live test monitoring
  • Enterprise-grade, industry leading compliance
  • Built-in features to track, detect and flag cheating attempts
Boost your hiring efficiency and conduct reliable online assessments confidently with HackerEarth's revolutionary Smart Browser.
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