Binary codes are a system of representing information using only two symbols: 0 and 1. This system is the foundation of digital computing, as computers use binary to process and store data. Each 0 or 1 is called a bit, and groups of bits can represent numbers, letters, and other characters through various encoding schemes. In binary code, each digit's position represents a power of 2. For example, the binary number 101 translates to the decimal number 5 because it is calculated as (1 × 2²) + (0 × 2¹) + (1 × 2⁰). This simple yet powerful system allows for efficient data representation and manipulation in modern technology.