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Bits, bytes, kilobytes, or megabytes - in the end they all represent the same thing: numbers. Numbers that connect telephones, give orders to computers, record financial transactions, track rockets to the moon, and monitor nuclear missiles. All numbers, just numbers. When you say that computers process information, you are also saying that computers store and retrieve, add and subtract, send and receive various collections of numbers, all of which are stored as binary numbers and all of which are kept and made accessible as data files.
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By using ASCII as a common language, computers can send and receive information at very fast speeds. When they communicate over a phone line, however, they must use modems and they must slow down considerably to allow for several intermediary steps. Instead of using a cable for direct computer-to-computer transmission, they must use a computer-to-modem -to-phone-to-modem -to-computer hookup. This communications relay is still much faster than many other communications technology now widely available, however, and in terms of spoken words, it can still be pretty fast.
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In their work as "translators," modems do two things : MOdulate and
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DEModulate - that's how they got their name. Essentially what happens is that the sending computer 's modem converts the information into a series of sound impulses that are able to travel over a telephone wire; this is the modulation process. On the other end, the receiving computer's modem translates the sounds back into the binary data that the computer can understand; this is the demodulation process. The speed at which computers and modems send and receive data is measured in baud, or bits per second. Most modems cannot communicate over the phone lines at more than 1200 baud, and quite a few cannot handle any more than 300 baud. At 300 baud, information is moving to or from a computer at the rate of about 30 characters per second; at 1200 baud, it is moving about four times as fast. In contrast, when computers are connected directly, they usually transmit data at 4800, 9600, or 19200 baud when using ASCII. At 19200 baud, information is moving at just about 20,000 characters per second.
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A terminal is a piece of equipment used for communicating with a computer. A terminal can either be connected directly to a computer by a cable or, if the terminal is equipped with a modem, it can be anywhere in the world. In addition, a terminal can be either "smart" or "dumb." A smart terminal has a microprocessor and is thus capable of independent "thought," whereas a dumb terminal has no microprocessor and is simply a device for sending and receiving information. Now, to make life a little more complicated, there's one more either/or: A terminal, smart or dumb, either mayor may not be associated with a modem. Let's clarify matters with a few examples: A dumb terminal with no modem is a sending and receiving device only and must be connected ("hard-wired") to a computer by means of a cable. A dumb terminal with a modem is still a sending and receiving device, but it can be anywhere, because the modem enables it to use a telephone to access the computer. A dumb terminal with a modem is the device I used in my first attempts at hacking. A smart terminal with no modem is capable of communicating with a computer, as long as it is connected to the larger machine by a cable, and it is capable of processing information on its own. It is often a microcomputer. A smart terminal with a modem is capable of communicating with a computer from any location that gives it access to the telephone system and, again, it is capable of processing information on its own. A microcomputer equipped with a modem can also be considered to be a smart terminal. When a computer allows a terminal to access it from a remote location, it treats that remote terminal just as if there were a cable connecting them directly, in the same room. As long as the remote terminal is connected to a communications port, or channel, through which information can enter and leave the system, the computer neither knows nor cares where the terminal is physically located.
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