Binary is a base-2 numeral system that uses two symbols, 0 and 1, to represent values. Computers use binary to represent all data as combinations of 0s and 1s. Bytes are made up of 8 bits, each representing a single 0 or 1. Decimal numbers can be converted to binary by repeatedly dividing the number by 2 and noting the remainders as 1s or 0s in the binary representation. Hexadecimal is similar but uses 16 symbols to represent 4 binary digits, making it more compact and human-readable than binary. Binary is used by computers because of its simplicity and efficiency for digital logic.