This lecture covers the development of portable and non-portable algorithms for generating random numbers, focusing on Schrage's algorithm and shift-register generator. The instructor explains the motivation, premises, and demonstrations of Schrage's algorithm, emphasizing the avoidance of overflow. Additionally, the lecture introduces non-portable algorithms used in computers with built-in overflow handling capabilities. The shift-register generator concept is discussed, highlighting the memorization of numbers as strings of 0s and 1s, with details on maximum cycle length and optimal pairs for cycles.