First, the easy part- Binary is used because digital computers use rely on the extant state of transistors to complete operations. Transistors have only two states: off (0) and on (1).
Binary-Decimal conversion is fairly simple also. The key is that each order of magnitude in a binary number represents a power of two.
So starting at the least significant bit (to the far right) it is 2^0:
1=1
0=0
Next is 2^1:
1=2
0=0
2^2:
1=4
0=0
And so on. So if one had 10101101 as their integer:
2^0 = 1 = 1
2^1 = 0 = 0
2^2 = 1 = 4
2^3 = 1 = 8
2^4 = 0 = 0
2^5 = 1 = 32
2^6 = 0 = 0
2^7 = 1 = 128
The integer is the sum of each bit's value, in this case 173.
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