Analog signals have a continuous range of values within some specified limits and can be associated with continuous physical phenomena.
Digital signals typically assume only two discrete values (states) and are appropriate for any phenomena involving counting or integer numbers.
While we were mostly interested in voltages and currents at specific points in analog circuits, we will be interested in the information flow in digital circuits.
The active elements in digital circuits are either bipolar transistors or FETs. These transistors are permitted to operate in only two states, which normally correspond to two output voltages. Hence the transistors act as switches.
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