Circadian regulation and homeostatic control are the two processes that regulate the timing and length of sleep. In simplest terms, Circadian regulation drives your 24-hour sleep-wake cycle via the influence of light and melatonin (i.e. your "internal clock").
During waking hours, your body accumulates substances that promote sleep—like adenosine—and when we sleep these substances are cleared up and we feel alert again. Homeostatic control is this process of build-up and release - when disrupted, it can have a negative impact on your health.
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