Sequential circuits have memory and their output depends on both the current inputs and past outputs. They contain combinational circuits and feedback loops using latches and flip-flops. There are two main types of sequential circuits - asynchronous which can change state anytime the inputs change, and synchronous which only change on a clock signal.
Latches continuously track inputs and can change output anytime, while flip-flops only change output on a clock signal. Common flip-flop types include SR, D, T, and JK. Counters are sequential circuits that cycle through a sequence of states on each clock pulse and are used to count events.