Role of color profile in graphics program

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I think I understand what color profiles are. I do not understand, what is the difference in manipulating photo for example in photoshop in 16bpp sRGB and 16bpp Adobe RGB. My monitor can only show me sRGB.

  • Is there any difference in algorithms?
  • Maybe there is some preprocessing executed before program displays effects of my work (for example AdobeRGB(0.3, 0.25, 0.82) is being displayed as sRGB(0.301, 0.253, 0.819) in my monitor)?
  • Is there any sense in using different color profiles when I am not using ICC profile of my monitor/printer?
  • In general – what should I do if I would want to develop my own graphics-manipulating application that supports profile different than sRGB (for example in Qt)?
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