Physics of Gamma-Ray Bursts Prompt Emission

In recent years, our understanding of gamma-ray bursts (GRB) prompt emission has been revolutionized, due to a combination of new instruments, new analysis methods, and novel ideas. In this review, I describe the most recent observational results and current theoretical interpretation. Observationally, a major development is the rise of time resolved spectral analysis. These led to (I) identification of a distinguished high energy component, with GeV photons often seen at a delay and (II) firm evidence for the existence of a photospheric (thermal) component in a large number of bursts. These results triggered many theoretical efforts aimed at understanding the physical conditions in the inner jet regions. I highlight some areas of active theoretical research. These include (I) understanding the role played by magnetic fields in shaping the dynamics of GRB outflow and spectra; (II) understanding the microphysics of kinetic and magnetic energy transfer, namely, accelerating particle to high energies in both shock waves and magnetic reconnection layers; (III) understanding how subphotospheric energy dissipation broadens the "Planck" spectrum; and (IV) geometrical light aberration effects. I highlight some of these efforts and point towards gaps that still exist in our knowledge as well as promising directions for the future.