Base Two, also known as the binary number system, is a way of representing numbers using only two digits: 0 and 1. This system is fundamental in computer science and digital electronics because it aligns with the on-off states of electronic circuits. Each digit in a binary number is referred to as a bit, and combinations of bits can represent larger numbers. In Base Two, each position in a binary number represents a power of 2. For example, the binary number 101 translates to decimal as 1 \times 2^2 + 0 \times 2^1 + 1 \times 2^0, which equals 5. This simplicity allows computers to process and store data efficiently.