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Methods to construct rational solutions of the lossless inverse scattering (LIS) problem for one-port passive digital systems are described. The first method is recursive and can be viewed as a generalization of the celebrated Schur algorithm. The second method is global and leads to a parametrization of what we call fundamental solutions from which all LIS solutions may be constructed. Quite a few classical problems in estimation theory and network theory may be viewed as special cases of the LIS problem. With each fundamental solution there is a solution of a corresponding estimation problem leading to a prediction and a modeling filter for a given stochastic process.