Adaptive algorithm is used in quizzes/exams. For example, as you begin an examination, the system starts exam (or quiz) at an easy difficulty level question. Based on how a student answers a specific problem, the system then increases (or decreases) the level of difficulty of forthcoming questions. But it does it gradually so that student is required to think and progressively student will learn better. This is called an adaptive algorithm, meaning understanding a student's skill and pushing so that students can always accomplish their highest possible potential.
In the end, the performance dashboard also shows the accuracy across different difficulty levels thus helping a student to further understand where to improve.