Hardware refers to the computer's physical components, like the monitor, keyboard, memory chips, motherboard and hard drive. Software is the set of instructions which tells the hardware to accomplish a task, software uses hardware for four basic functions: input, processing, storage and output.Hardware components must communicate with both data and instructions among themselves.
A computer user interacts with the computer in a way that the user and the software understand, like entries made from the keyboard and the mouse.
Although, software must convert those instructions into a form which hardware can understand. All of the communication between hardware and software, or between software and other software is reduced to a yes or no, inside the computer this is represented as two simple states: on and off.
The technology of storing and reading only two states is called binary, and the number system which uses only two digits, 0 and 1, is called the binary number system.
With a computer, all counting and calculations use the binary number system. Counting in binary goes like this: 0, 1, 10, 11, 100, 101, and so on. all letters and characters are converted to a binary code before being stored on in a computer. An example is the uppercase letter A in binary code is 0100 0001, and the number 25 is 0001 1001.