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Unformatted text preview: UDP is a replacement for TCP, used when it makes sense to sacrifice packet quality for delivery
speed. I t’s often used for media streaming.
TCP/I P doesn’t care about the transition media. This allows networks of different types—copper,
fiber, and wireless—to connect to and participate in the I nternet.
The ability to swap in new applications, protocols, and media files gives the network tremendous
Decentraliz ation, fault tolerance, and redundancy help keep the network open and reliable.
VoI P allows voice and phone systems to become an application traveling over the I nternet. This
is allowing many firms to save money on phone calls and through the elimination of old,
inefficient circuit‐switched networks. As I nternet applications, VoI P phone systems can also have additional features that circuit‐switched networks lack. The primary limitation of many VoI P
systems is quality of service.
Many firms in the finance industry have developed automated trading models that analyz e data
and execute trades without human intervention. Speeds substantially less than one second may
be vital to capitaliz ing on market opportunities, so firms are increasingly moving equipment into
collocation facilities that provide high‐speed connectivity to other trading systems. QU E S TI ONS AND E XE RC I S E S
1. How can the I nternet consist of networks of such physically different transmission media—cable,
fiber, and wireless?
2. What is the difference between TCP and UDP? Why would you use one over the other?
3. Would you recommend a VoI P phone system to your firm or University? Why or why not? What
are the advantages? What are the disadvantages? Can you think of possible concerns or benefits
not mentioned in this section? Research these concerns online and share your finding with your
4. What are the risks in the kinds of automated trading systems described in this section? Conduct
research and find an example of where these systems have caused problems for firms and/or the
broader market. What can be done to prevent...
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- Winter '14