Binary representation is a way of expressing numbers using only two digits: 0 and 1. This system is the foundation of digital computing, as computers use binary to process and store data. Each digit in a binary number is called a bit, and a group of eight bits forms a byte, which can represent values from 0 to 255. In binary, each position represents a power of 2. For example, the binary number 101 corresponds to the decimal number 5, calculated as (1 × 2²) + (0 × 2¹) + (1 × 2⁰). This method allows computers to perform complex calculations and store information efficiently.