The document discusses differential protection principles and schemes. It describes how differential protection compares currents on the primary and secondary sides of a transformer to detect internal faults. A basic differential scheme directly compares currents but can operate due to CT ratio mismatches or inrush currents. A bias/restraining differential scheme uses an operating coil to detect differential currents and a restraining coil to prevent operation due to through currents. It provides examples of calculating currents and determining if relays would operate for different faults.