The document discusses decoders, which are combinational logic circuits that convert binary input signals into unique output signals. A decoder takes a binary number as input and activates only the single output corresponding to that number. Decoders can be implemented using AND, NAND, and inverter gates to provide either active-high or active-low outputs. Larger decoders can be constructed by cascading smaller decoder blocks such as combining two 2-to-4 decoders to create a 3-to-8 decoder.