The microprocessor is a programmable device that processes binary numbers according to instructions stored in memory. It contains arithmetic, logic, and control circuits on a single silicon chip. Early processors used discrete components but were large and slow. The invention of the microchip led to much smaller and faster processors by integrating all components onto a single silicon slice. Modern microprocessors manipulate 32-bit or 64-bit words and have instruction sets that define their capabilities. The 8085 was an 8-bit microprocessor that used multiplexed address/data lines, requiring external latching to separate addresses from data.