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This video tutorial on binary addition and subtraction outlines the importance of understanding arithmetic operations in the binary number system. The rules for binary addition are explained - 0 + 0 = 0, 0 + 1 = 1, 1 + 0 = 1, and 1 + 1 = 0 with a carry to the next column. The binary equivalent of 2 is 10. Understanding these principles is crucial for digital circuits like computers that operate in binary.