The binary number system uses only two digits, 0 and 1, while the decimal system uses ten digits, 0-9. Binary is useful for computers and digital electronics because circuits can be designed to represent "on" and "off" as 1 and 0. A single binary digit is called a bit, while 8 bits form a byte. To convert between binary and decimal, binary uses place values like decimal (ones, twos, fours, eights etc.) and decimal uses long division, with remainders becoming the binary digits.