Logic circuits are the basis of digital computer systems and operate using binary logic and Boolean algebra. Binary logic uses variables that can only have two values, 1 or 0, and logical operations on these variables. There are three basic logical operations: AND, OR, and NOT. Logic gates are electronic circuits that perform logical operations on inputs and produce an output. Boolean algebra uses rules and properties to describe logical relationships between binary variables. Logisim is a digital design tool that can be used to design and simulate logic circuits.