What is the characteristic of digital systems?

Digital systems are distinguished primarily by their use of binary code to represent information. In digital systems, data is processed and stored as sequences of binary digits—0s and 1s—which enables efficient computing and data management. This binary representation allows for complex data structures and algorithms to function within a system, ensuring higher precision and lower susceptibility to errors compared to other forms of data representation.

The choice that asserts digital systems represent information in analog form misunderstands the foundational principle of digital technology, which focuses on discrete signals rather than continuous waves. Similarly, stating that digital systems operate on physical cash transactions misrepresents the nature of digital systems, which can function with electronic and virtual currencies without being tied to physical cash. Finally, relying solely on written financial records does not capture the essence of digital systems, as they often utilize electronic records and databases for data management, enhancing accessibility and security. Thus, understanding that binary representation is central to the operation and efficiency of digital systems highlights why that characteristic is key.