| Abstract : | Gamma ray bursts (GRBs) are the most violent explosions in the universe. While being studied extensively since the 1990's, their illusive nature prevented, so far, a clear understanding of their underlying physical processes. In this talk, I will first give an overview of our current understanding of GRB physics. I will then discuss recent developments in understanding the origin of the prompt spectra, and in particular the role of thermal emission in it. I will discuss some novel effects and theoretical ideas relevant for the study of many astronomical objects. As a few examples, I will show how emission from the photosphere can be observed to have high degree of polarization; how it can be used to infer the jet magnetization; how data can be used to constrain production of high energy cosmic rays; and more. Finally, I will discuss a novel idea of back-scattering prompt emission model. I will show how such a model can explain some key features such as the spectral and temporal slopes as well as the observed peak energy-isotropic energy ("Amati") relation.
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