Binary formats are ways of encoding data using only two symbols, typically 0 and 1. This method allows computers to store and process information efficiently, as they operate using electrical signals that can easily represent these two states. Common binary formats include JPEG for images, MP3 for audio, and PDF for documents. These formats are essential for digital communication and storage, as they reduce file sizes and improve processing speed. When data is saved in a binary format, it can be quickly read and interpreted by computers, making it easier to share and manipulate information across different systems and applications.