The binary system is a numerical system that functions virtually identically to the decimal number system that people are likely more familiar with. While the decimal number system uses the number 10 as its base, the binary system uses 2. Furthermore, although the decimal system uses the digits 0 through 9, the binary system uses only 0 and 1, and each digit is referred to as a bit. Apart from these differences, operations such as addition, subtraction, multiplication, and division are all computed following the same rules as the decimal system.