Banker's algorithm
The Banker's algorithm is a resource allocation and deadlock avoidance algorithm developed by Edsger Dijkstra that tests for safety by simulating the allocation of predetermined maximum possible amounts of all resources, and then makes a "safe-state" check to test for possible deadlock conditions for all other pending activities, before deciding whether allocation should be allowed to continue.
Why this name ?
The Banker's Algorithm derives its name from the fact that this algorithm could be used in a banking system to ensure that the bank does not run out of resources, because the bank would never allocate its money in such a way that it can no longer satisfy the needs of all its customers. By using the Banker's algorithm, the bank ensures that when customers request money the bank never leaves a safe state. If the customer's request does not cause the bank to leave a safe state, the cash will be allocated, otherwise the customer must wait until some other customer deposits enough.
How this works?
The Banker's algorithm is run by the operating system whenever a process requests resources. The algorithm avoids deadlock by denying or postponing the request if it determines that accepting the request could put the system in an unsafe state (one where deadlock could occur). When a new process enters a system, it must declare the maximum number of instances of each resource type that may not exceed the total number of resources in the system. Also, when a process gets all its requested resources it must return them in a finite amount of time.
Source Courtesy : Wikipedia
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