Intensive research is currently underway to exploit the highly interesting properties of nano-bits (“nano-sized particles and molecules”) for optical, electronic and other applications. The basis of these unique properties is the small-size of these structures which result in quantum mechanical phenomena and interesting surface properties. The small molecules and/or nano-particles are selected in such a way so that it can create an internal electric in the nano-composite. We define a nanocomposite is an admixture of small molecules and/or nano-particles and a polymer. We have demonstrated the internal electric field in our devices, made from nano-bits (nano-particles and/or molecules) and insulating materials, can contribute to the electrical bistability i.e. two conductive states.