Boolean algebra is a system of logical operations developed by George Boole in the 19th century. It represents logical statements as expressions of binary variables, where true is represented by 1 and false by 0. The fundamental logical operations are AND, OR, and NOT. Boolean algebra finds application in digital circuits, where it is used to perform logical operations using electrical switches representing 1s and 0s. Boolean functions can be expressed in canonical forms such as Sum of Products (SOP) or Product of Sum (POS) and simplified using algebraic rules or Karnaugh maps to minimize the number of logic gates required.