The Tower of Hanoi problem involves moving n disks from one rod to another, following specific rules: only the top disk can be moved, no large disk can sit over a small disk, and order must be maintained. The algorithm for solving this problem is recursive and requires 2^n-1 steps. Another problem mentioned is the Ternary Search algorithm, which divides a sorted list of n elements into three sublists and searches for an element in log3n time complexity.