Control unit

The control unit (often called a control system or central controller) manages the computer's various components; it reads and interprets (decodes) the program instructions, transforming them into a series of control signals which activate other parts of the computer.^[22] Control systems in advanced computers may change the order of some instructions so as to improve performance.

A key component common to all CPUs is the program counter, a special memory cell (a register) that keeps track of which location in memory the next instruction is to be read from.^[23]

The control system's function is as follows—note that this is a simplified description, and some of these steps may be performed concurrently or in a different order depending on the type of CPU:

1. Read the code for the next instruction from the cell indicated by the program counter.
2. Decode the numerical code for the instruction into a set of commands or signals for each of the other systems.
3. Increment the program counter so it points to the next instruction.
4. Read whatever data the instruction requires from cells in memory (or perhaps from an input device). The location of this required data is typically stored within the instruction code.
5. Provide the necessary data to an ALU or register.
6. If the instruction requires an ALU or specialized hardware to complete, instruct the hardware to perform the requested operation.
7. Write the result from the ALU back to a memory location or to a register or perhaps an output device.
8. Jump back to step (1).

Since the program counter is (conceptually) just another set of memory cells, it can be changed by calculations done in the ALU. Adding 100 to the program counter would cause the next instruction to be read from a place 100 locations further down the program. Instructions that modify the program counter are often known as "jumps" and allow for loops (instructions that are repeated by the computer) and often conditional instruction execution (both examples of control flow).

It is noticeable that the sequence of operations that the control unit goes through to process an instruction is in itself like a short computer program—and indeed, in some more complex CPU designs, there is another yet smaller computer called a microsequencer that runs a microcode program that causes all of these events to happen.

History of computing

The first use of the word "computer" was recorded in 1613, referring to a person who carried out calculations, or computations, and the word continued to be used in that sense until the middle of the 20th century. From the end of the 19th century onwards though, the word began to take on its more familiar meaning, describing a machine that carries out computations.

The history of the modern computer begins with two separate technologies—automated calculation and programmability—but no single device can be identified as the earliest computer, partly because of the inconsistent application of that term. Examples of early mechanical calculating devices include the abacus, the slide rule and arguably the astrolabe and the Antikythera mechanism (which dates from about 150–100 BC). Hero of Alexandria (c. 10–70 AD) built a mechanical theater which performed a play lasting 10 minutes and was operated by a complex system of ropes and drums that might be considered to be a means of deciding which parts of the mechanism performed which actions and when.^[4] This is the essence of programmability.

The "castle clock", an astronomical clock invented by Al-Jazari in 1206, is considered to be the earliest programmable analog computer. It displayed the zodiac, the solar and lunar orbits, a crescent moon-shaped pointer travelling across a gateway causing automatic doors to open every hour, and five robotic musicians who played music when struck by levers operated by a camshaft attached to a water wheel. The length of day and night could be re-programmed to compensate for the changing lengths of day and night throughout the year.

The Renaissance saw a re-invigoration of European mathematics and engineering. Wilhelm Schickard's 1623 device was the first of a number of mechanical calculators constructed by European engineers, but none fit the modern definition of a computer, because they could not be programmed.

In 1801, Joseph Marie Jacquard made an improvement to the textile loom by introducing a series of punched paper cards as a template which allowed his loom to weave intricate patterns automatically. The resulting Jacquard loom was an important step in the development of computers because the use of punched cards to define woven patterns can be viewed as an early, albeit limited, form of programmability.

It was the fusion of automatic calculation with programmability that produced the first recognizable computers. In 1837, Charles Babbage was the first to conceptualize and design a fully programmable mechanical computer, his analytical engine. Limited finances and Babbage's inability to resist tinkering with the design meant that the device was never completed.

In the late 1880s, Herman Hollerith invented the recording of data on a machine readable medium. Prior uses of machine readable media, above, had been for control, not data. "After some initial trials with paper tape, he settled on punched cards ..." To process these punched cards he invented the tabulator, and the keypunch machines. These three inventions were the foundation of the modern information processing industry. Large-scale automated data processing of punched cards was performed for the 1890 United States Census by Hollerith's company, which later became the core of IBM. By the end of the 19th century a number of technologies that would later prove useful in the realization of practical computers had begun to appear: the punched card, Boolean algebra, the vacuum tube (thermionic valve) and the teleprinter.

During the first half of the 20th century, many scientific computing needs were met by increasingly sophisticated analog computers, which used a direct mechanical or electrical model of the problem as a basis for computation. However, these were not programmable and generally lacked the versatility and accuracy of modern digital computers.

Alan Turing is widely regarded to be the father of modern computer science. In 1936 Turing provided an influential formalisation of the concept of the algorithm and computation with the Turing machine. Of his role in the modern computer, Time magazine in naming Turing one of the 100 most influential people of the 20th century, states: "The fact remains that everyone who taps at a keyboard, opening a spreadsheet or a word-processing program, is working on an incarnation of a Turing machine".

Market size and liquidity

The foreign exchange market is the largest and most liquid financial market in the world. Traders include large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements. Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.
Of the $3.98 trillion daily global turnover, trading in London accounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in New York accounted for 16.6%, and Tokyo accounted for 6.0%. In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.
Exchange-traded FX futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.
Several other developed countries also permit the trading of FX derivative products (like currency futures and options on currency futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Most emerging countries do not permit FX derivative products on their exchanges in view of prevalent controls on the capital accounts. However, a few select emerging countries (e.g., Korea, South Africa, India have already successfully experimented with the currency futures exchanges, despite having some controls on the capital account.

Foreign exchange market

The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends.
The purpose of the foreign exchange market is to assist international trade and investment. The foreign exchange market allows businesses to convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars. Some experts, however, believe that the unchecked speculative movement of currencies by large financial institutions such as hedge funds impedes the markets from correcting global current account imbalances. This carry trade may also lead to loss of competitiveness in some countries.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.

Programs

In practical terms, a computer program may run from just a few instructions to many millions of instructions, as in a program for a word processor or a web browser. A typical modern computer can execute billions of instructions per second (gigahertz or GHz) and rarely make a mistake over many years of operation. Large computer programs consisting of several million instructions may take teams of programmers years to write, and due to the complexity of the task almost certainly contain errors.

Errors in computer programs are called "bugs". Bugs may be benign and not affect the usefulness of the program, or have only subtle effects. But in some cases they may cause the program to "hang"—become unresponsive to input such as mouse clicks or keystrokes, or to completely fail or "crash". Otherwise benign bugs may sometimes may be harnessed for malicious intent by an unscrupulous user writing an "exploit"—code designed to take advantage of a bug and disrupt a program's proper execution. Bugs are usually not the fault of the computer. Since computers merely execute the instructions they are given, bugs are nearly always the result of programmer error or an oversight made in the program's design.^[18]

In most computers, individual instructions are stored as machine code with each instruction being given a unique number (its operation code or opcode for short). The command to add two numbers together would have one opcode, the command to multiply them would have a different opcode and so on. The simplest computers are able to perform any of a handful of different instructions; the more complex computers have several hundred to choose from—each with a unique numerical code. Since the computer's memory is able to store numbers, it can also store the instruction codes. This leads to the important fact that entire programs (which are just lists of instructions) can be represented as lists of numbers and can themselves be manipulated inside the computer just as if they were numeric data. The fundamental concept of storing programs in the computer's memory alongside the data they operate on is the crux of the von Neumann, or stored program, architecture. In some cases, a computer might store some or all of its program in memory that is kept separate from the data it operates on. This is called the Harvard architecture after the Harvard Mark I computer. Modern von Neumann computers display some traits of the Harvard architecture in their designs, such as in CPU caches.

While it is possible to write computer programs as long lists of numbers (machine language) and this technique was used with many early computers,^[19] it is extremely tedious to do so in practice, especially for complicated programs. Instead, each basic instruction can be given a short name that is indicative of its function and easy to remember—a mnemonic such as ADD, SUB, MULT or JUMP. These mnemonics are collectively known as a computer's assembly language. Converting programs written in assembly language into something the computer can actually understand (machine language) is usually done by a computer program called an assembler. Machine languages and the assembly languages that represent them (collectively termed low-level programming languages) tend to be unique to a particular type of computer. For instance, an ARM architecture computer (such as may be found in a PDA or a hand-held videogame) cannot understand the machine language of an Intel Pentium or the AMD Athlon 64 computer that might be in a PC.

Though considerably easier than in machine language, writing long programs in assembly language is often difficult and error prone. Therefore, most complicated programs are written in more abstract high-level programming languages that are able to express the needs of the programmer more conveniently (and thereby help reduce programmer error). High level languages are usually "compiled" into machine language (or sometimes into assembly language and then into machine language) using another computer program called a compiler. Since high level languages are more abstract than assembly language, it is possible to use different compilers to translate the same high level language program into the machine language of many different types of computer. This is part of the means by which software like video games may be made available for different computer architectures such as personal computers and various video game consoles.

The task of developing large software systems presents a significant intellectual challenge. Producing software with an acceptably high reliability within a predictable schedule and budget has historically been difficult; the academic and professional discipline of software engineering concentrates specifically on this challenge.

Stored program architecture

The defining feature of modern computers which distinguishes them from all other machines is that they can be programmed. That is to say that a list of instructions (the program) can be given to the computer and it will store them and carry them out at some time in the future.

In most cases, computer instructions are simple: add one number to another, move some data from one location to another, send a message to some external device, etc. These instructions are read from the computer's memory and are generally carried out (executed) in the order they were given. However, there are usually specialized instructions to tell the computer to jump ahead or backwards to some other place in the program and to carry on executing from there. These are called "jump" instructions (or branches). Furthermore, jump instructions may be made to happen conditionally so that different sequences of instructions may be used depending on the result of some previous calculation or some external event. Many computers directly support subroutines by providing a type of jump that "remembers" the location it jumped from and another instruction to return to the instruction following that jump instruction.

Program execution might be likened to reading a book. While a person will normally read each word and line in sequence, they may at times jump back to an earlier place in the text or skip sections that are not of interest. Similarly, a computer may sometimes go back and repeat the instructions in some section of the program over and over again until some internal condition is met. This is called the flow of control within the program and it is what allows the computer to perform tasks repeatedly without human intervention.

Comparatively, a person using a pocket calculator can perform a basic arithmetic operation such as adding two numbers with just a few button presses. But to add together all of the numbers from 1 to 1,000 would take thousands of button presses and a lot of time—with a near certainty of making a mistake. On the other hand, a computer may be programmed to do this with just a few simple instructions.

History of computing

The first use of the word "computer" was recorded in 1613, referring to a person who carried out calculations, or computations, and the word continued to be used in that sense until the middle of the 20th century. From the end of the 19th century onwards though, the word began to take on its more familiar meaning, describing a machine that carries out computations.

The history of the modern computer begins with two separate technologies—automated calculation and programmability—but no single device can be identified as the earliest computer, partly because of the inconsistent application of that term. Examples of early mechanical calculating devices include the abacus, the slide rule and arguably the astrolabe and the Antikythera mechanism (which dates from about 150–100 BC). Hero of Alexandria (c. 10–70 AD) built a mechanical theater which performed a play lasting 10 minutes and was operated by a complex system of ropes and drums that might be considered to be a means of deciding which parts of the mechanism performed which actions and when. This is the essence of programmability.

The "castle clock", an astronomical clock invented by Al-Jazari in 1206, is considered to be the earliest programmable analog computer.^[5] It displayed the zodiac, the solar and lunar orbits, a crescent moon-shaped pointer travelling across a gateway causing automatic doors to open every hour, and five robotic musicians who played music when struck by levers operated by a camshaft attached to a water wheel. The length of day and night could be re-programmed to compensate for the changing lengths of day and night throughout the year.

The Renaissance saw a re-invigoration of European mathematics and engineering. Wilhelm Schickard's 1623 device was the first of a number of mechanical calculators constructed by European engineers, but none fit the modern definition of a computer, because they could not be programmed.

In 1801, Joseph Marie Jacquard made an improvement to the textile loom by introducing a series of punched paper cards as a template which allowed his loom to weave intricate patterns automatically. The resulting Jacquard loom was an important step in the development of computers because the use of punched cards to define woven patterns can be viewed as an early, albeit limited, form of programmability.

It was the fusion of automatic calculation with programmability that produced the first recognizable computers. In 1837, Charles Babbage was the first to conceptualize and design a fully programmable mechanical computer, his analytical engine.^[8] Limited finances and Babbage's inability to resist tinkering with the design meant that the device was never completed.

In the late 1880s, Herman Hollerith invented the recording of data on a machine readable medium. Prior uses of machine readable media, above, had been for control, not data. "After some initial trials with paper tape, he settled on punched cards ..." To process these punched cards he invented the tabulator, and the keypunch machines. These three inventions were the foundation of the modern information processing industry. Large-scale automated data processing of punched cards was performed for the 1890 United States Census by Hollerith's company, which later became the core of IBM. By the end of the 19th century a number of technologies that would later prove useful in the realization of practical computers had begun to appear: the punched card, Boolean algebra, the vacuum tube (thermionic valve) and the teleprinter.

During the first half of the 20th century, many scientific computing needs were met by increasingly sophisticated analog computers, which used a direct mechanical or electrical model of the problem as a basis for computation. However, these were not programmable and generally lacked the versatility and accuracy of modern digital computers.

Alan Turing is widely regarded to be the father of modern computer science. In 1936 Turing provided an influential formalisation of the concept of the algorithm and computation with the Turing machine. Of his role in the modern computer, Time magazine in naming Turing one of the 100 most influential people of the 20th century, states: "The fact remains that everyone who taps at a keyboard, opening a spreadsheet or a word-processing program, is working on an incarnation of a Turing machine".

The inventor of the program-controlled computer was Konrad Zuse, who built the first working computer in 1941 and later in 1955 the first computer based on magnetic storage.

George Stibitz is internationally recognized as a father of the modern digital computer. While working at Bell Labs in November 1937, Stibitz invented and built a relay-based calculator he dubbed the "Model K" (for "kitchen table", on which he had assembled it), which was the first to use binary circuits to perform an arithmetic operation. Later models added greater sophistication including complex arithmetic and programmability.