Binary is a number system that only consists of 2 digits: 0 and 1 (Unlike our normal base 10 system, which consists of 10 digits from 0 - 9.). In binary, these 'digits' are known as bits. The binary number system is used by computers to reflect the on (1) and off (0) states of a transistor. Although binary may look odd at first, reading binary numbers is straightforward. It is a positional system, so every bit is raised to the power of 2 based on its position in the number. This starts from the rightmost bit (also called the least significant bit or LSB) with the position index of 0 and goes up from there. With binary, you can also represent fractions. A binary number can be separated by a radix point, with the left side of the point representing the integer part of the number, and the right side representing the fractional part of the number.