Final answer:
A binary digit can represent two possible values: 0 or 1. These binary digits are used as the basic unit of data in computing and digital communications, signaling states that can be combined to represent complex information and facilitate data transfer.
Step-by-step explanation:
A binary digit, often known as a bit, is the most basic unit of data in computing and digital communications. Binary digits can represent two possible values: either 0 or 1. These values are used in various combinations to represent more complex information. In the context of a binary number system which is base-2, each binary digit can only assume one of two possible states. This is in contrast to the decimal system which is base-10, where a digit can take on any value from 0 to 9. For instance, in computer data and digital communication, including cell phone conversations and television transmissions, information is encoded into a sequence of binary ones and zeros, facilitating clear data transfer even when signals are weak and allowing efficient data compression via computer algorithms.