The "Next-Fit" algorithm is a memory allocation strategy used in computer science to manage dynamic memory. It works by scanning a list of memory blocks and allocating the next available block that is large enough to accommodate the requested size. If the block is too small, the algorithm skips it and moves to the next one, continuing this process until it finds a suitable block or reaches the end of the list. This method is efficient for certain scenarios, as it reduces the time spent searching for free memory. However, it can lead to fragmentation over time, where small unusable gaps form between allocated blocks. This can make it challenging to find larger contiguous memory spaces later on.