It can be shown that $\langle FI, F(i)\rangle$ is isomorphic to $\langle I,i\rangle$ and so one can view the initial algebra as fixed point of $F$. It is, then, the most generic and encompassing algebra for which an operation $\alpha:FA\to A$ can make sense. Initial algebras are the categorical semantics for inductive types in type theory.

By definition, the initial $F$-algebra $\langle I,i\rangle$ can in a unique way be mapped into each other $F$-algebra $\langle A,\alpha\rangle$. These unique arrows are called catamorphisms. In the examples below, we see how it encodes recursion schemes involving the $\alpha$'s of the respective codomain.

Initial algebras for categories of countable sets and types always exists.

In the following, we give some examples. Note that one can “automatize” some of repeating features of the discussed catamorphisms, see haskellwiki/Catamorphisms. I've also translated the examples and the general case Haskell code on wikipedia/Catamorphism.

$\{\text{Nothing}\}$ is any fixed singleton/unit type, $L+R$ denotes the disjoint union/sum type of $L$ and $R$ and “[left,right]” is notation for a conditional function on $L+R$. Instead of ${\bf Set}$, any category with terminal object, sums and products will do.

• Consider the Maybe functor given by $MX:=\{\text{Nothing}\}+X$ and $M(f):=[\_,f]$, where $\_$ just passes the $\text{Nothing}$ from $F(f)$'s domain to the $\text{Nothing}$ of it's codomain. For $M$-algebras, initiality says that for any algebra $\langle A,[e,\mu]\rangle$, there is exactly one arrow $\langle cata\rangle:\langle I,[i_l,i_r]\rangle\to\langle A,[e,\mu]\rangle$. The general condition for arrows in the category of $M$-algebras $cata\circ [i_l,i_r]=[e,\mu]\circ [\mathrm{id},cata]$ implies $cata\circ i_l=e$ and $cata\circ i_r^m=\mu^m\circ cata$. One can show that this is just the definition of the Natural numbers object of the category. Indeed, the initial algebra turns out to be $\langle \mathbb N,[nil, succ]\rangle$, where $nil(\text{Nothing}):=0$ and $succ(n):=n+1$ and the catamorphism to any algebra is $cata(n):=\mu^n(e)$, so that indeed, $cata(n+m):=\mu^m(cata(n))$. Note how $\mathbb N$ is the most generic solution for “$\{\text{Nothing}\}+X=X$”. In fact this is the characterization of the natural numbers in the sense of ordinals: Take the empty set and, step by step, add a new element to the set until you have the countable infinity.

• For fixed $A$, the object map $FX:=\{\text{Nothing}\}+(A\times X)$ gives us lists of $A$'s: $\langle \mathrm{List}(A),[nil, cons]\rangle$, where $nil(\text{Nothing}):=\langle\rangle$ and $cons(a,\langle b,c,\dots,z\rangle):=\langle a,b,c,\dots,z\rangle$. Again, note how $\mathrm{List}(A)$ is the fixed point of “$\{\text{Nothing}\}+(A\times X)=X$”. Tongue-in-cheek the solution is $X=\frac{1}{1-A}=1+A+A\times A+A\times A\times A+\dots$, which is the set of $A$-lists of arbitrary size.

• $FX:=A+(X\times X)$ gives trees of $A$'s. Consider “$A+(X\times X)=X$”.

• Initial algebras for categories of countable sets and types always exists.

Wikipedia: Initial algbera, Catamorphism, Fold

Haskellwiki: Catamorphisms

Category of F-algebras

Initial object