George Boole invented Boolean algebra in 1854 to represent logical operations using algebra. Boolean algebra uses two values, TRUE and FALSE, and defines operators like AND, OR, and NOT. It became useful for digital circuit design when Claude Shannon applied it to telephone switching circuits. Boolean algebra is defined by elements, operators, and axioms like closure, commutativity, identity, and inverse elements. The theorems of Boolean algebra can be proven using truth tables that list all possible combinations of input variables.