In this video the algorithm of binary search is discussed, which works efficiently on a sorted list to find a specific value. It starts by finding the midpoint of the list and comparing it with the target value. If the value is not found, the search is narrowed down to half of the list, repeating the process until the value is found or it's determined that the value is not in the list. The binary search algorithm has a logarithmic cost, making it efficient for searching large lists. The recurrence equation for this problem takes into account the base case where the number of elements is one or less, and the size of the problem is limited by the parameters. Binary search is an important algorithm in computer science, used not only in search but also in sorting and other applications where sorted elements are present.