Acharya Prashant explains the fundamental distinction between knowledge and realization. Knowledge is described as an accumulation of information or objects in the mind's warehouse, driven by a sense of incompleteness or the fear of missing out. This process is intellectual and existential, where one feels that not knowing something makes them inferior or lacking. In contrast, realization is a state where knowing or not knowing does not affect one's core being. It is the understanding that while knowledge has a limited, functional purpose in the world, it cannot touch or define the essence of the self. Realization is not a new piece of information or a thought; it is the state of remaining untouched by the play of thoughts, objects, and the world. He further clarifies that self-knowledge involves observing the ego's activities in the flow of daily life without interruption. It is the honest awareness of one's reactions, such as feeling happy upon gaining something or sad upon losing it. Self-realization, however, is the state where these gains and losses no longer create a sense of lack or increase in the individual. Acharya Prashant emphasizes that realization cannot be 'attained' because it is not an object to be acquired; it is our natural state of simplicity and innocence. He critiques the common usage of the term 'ignorant' for infants, arguing that a child is actually in a state of realization because they are not driven by the value of worldly knowledge or possessions. True ignorance belongs to those who believe realization is something to be searched for or achieved, rather than recognizing it as their inherent nature.