An algorithm is a set of instruction steps that are designed to solve a specific problem. It is a systematic approach that provides a clear and logical sequence of operations to be followed in order to achieve the desired outcome. Algorithms are used in various fields such as mathematics, computer science, and problem-solving in general. They serve as a blueprint for solving complex problems by breaking them down into smaller, more manageable steps. By following the instructions provided by an algorithm, one can effectively solve a given problem.