Final answer:
The NAND gate operates on high and low signals, utilizing transistors as on-off switches that correspond to logical '1' and '0' in binary code.
Step-by-step explanation:
The NAND gate in digital electronics operates on high and low signals at the transistor level. A NAND gate at the most basic level can be constructed from transistors. These transistors work together to create the desired logical operation. In a digital circuit, a transistor behaves like an on-off switch in response to these signals.
When the transistor is on, it allows current to flow through the circuit, representing a high signal or logical '1'. Conversely, when the transistor is off, it stops the current, representing a low signal or logical '0'. The operation of these transistors in integrated circuits (IC) is foundational in computing and virtually all modern electronics, which rely on binary code to operate.