Algorithm challenges are problems designed to test and improve one's problem-solving skills using algorithms. These challenges often involve tasks like sorting data, finding the shortest path, or optimizing resources. They are commonly found in coding competitions and online platforms, where participants can practice and showcase their abilities. Many algorithm challenges are categorized by difficulty levels, ranging from beginner to advanced. Participants can use programming languages such as Python, Java, or C++ to implement their solutions. Engaging in these challenges helps individuals enhance their coding skills and prepares them for technical interviews in the software industry.