Yes, it uses a very similar algorith as LaTeX. It also incorporates already some microtype features out of the box. So the typesetting quality is very good and easily comparable to LaTeX. Working with Typst is so much easier and faster than with LaTeX so you will be more productive. Many things can be done without resorting to external packages and scripting is a breeze compared to LaTeX.

Just try it out. It is free, open source and very easy to setup. Just install the extension Tinymist on VSCode, that is all you need.