Hamming's algorithm is a method used in error detection and correction for digital data. Developed by Richard Hamming, it adds redundant bits to a data set, allowing the system to identify and correct errors that may occur during data transmission or storage. This is particularly useful in communication systems where data integrity is crucial. The algorithm works by organizing data into a specific format and calculating parity bits based on the data's binary representation. When data is received, the algorithm checks these parity bits to detect any discrepancies, enabling the correction of single-bit errors and improving overall reliability in data communication.