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No best answer has yet been selected by andizuki1982. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.The numbers you enter are first converted to binary numbers that use just 1s and 0s.
That keeps the rules of arithmetic simple. For example there are only 4 rules of addition:
0 + 0 = 0
0 + 1 = 1
1 + 0 = 1
1 + 1 = 10
(There would need to be 100 such rules in denary arithmetic)
The other reason binary is used is because it is easily represented in electricity by a part of the circuit being either switched on (1) or off (0).
Simple circuitry (called AND, OR and NOT gates) can combine the values in the rules to give the required output.
The result is then converted back into denary for the display.