binary
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Binary means base 2 - it uses two digits. Those digits are zero and one.
Yes, 0 and 1.
This is very similar to the decimal system, which is based on the number 10, and uses 10 digits. The ten lowest natural numbers (starting with 0) are used. Similarly, in a base-2 system, you would require two digits, starting with 0 - that is, zero and one.
two
The binary system uses two digits, zero and one.