Binary arithmetic is a method of performing calculations using the binary number system, which consists of only two digits: 0 and 1. This system is fundamental in computing, as it aligns with the way electronic circuits operate, using two states—on and off. Basic operations in binary arithmetic include addition, subtraction, multiplication, and division, similar to decimal arithmetic but following specific rules for carrying and borrowing. In binary addition, for example, 0 + 0 equals 0, 1 + 0 equals 1, and 1 + 1 equals 10 in binary, where the 1 is carried over. Subtraction also follows unique rules, particularly when borrowing is necessary. Understanding binary arithmetic is essential for programming and digital circuit design, as it forms the backbone of computer science and digital electronics.