This document discusses sequential circuits and their classification. Sequential circuits contain feedback elements that store internal states. They are classified as either asynchronous or synchronous. Asynchronous circuits use combinational logic for feedback and have no clock, which can cause instability. Synchronous circuits use clocked flip-flops for storage and only change state on clock edges, making them more stable. The document focuses on the differences between asynchronous and synchronous sequential circuits and their basic designs.