Yes, binary (with some minor exceptions) is the only data storage method computers use.

http://computer.howstuffworks.com/bytes1.htm The Base-2 System and the 8-bit Byte The reason computers use the base-2 system is because it makes it a lot easier to implement them with current electronic technology. You could wire up and build computers that operate in base-10, but they would be fiendishly expensive right now. On the other hand, base-2 computers are relatively cheap. So computers use binary numbers, and therefore use binary digits in place of decimal digits. The word bit is a shortening of the words "Binary digIT." Whereas decimal digits have 10 possible values ranging from 0 to 9, bits have only two possible values: 0 and 1. Therefore, a binary number is composed of only 0s and 1s, like this: 1011. How do you figure out what the value of the binary number 1011 is? You do it in the same way we did it above for 6357, but you use a base of 2 instead of a base of 10. So: (1 * 2^3) + (0 * 2^2) + (1 * 2^1) + (1 * 2^0) = 8 + 0 + 2 + 1 = 11 You can see that in binary numbers, each bit holds the value of increasing powers of 2. That makes counting in binary pretty easy. Starting at zero and going through 20, counting in decimal and binary looks like this: 0 = 0 1 = 1 2 = 10 3 = 11 4 = 100 5 = 101 6 = 110 7 = 111 8 = 1000 9 = 1001 10 = 1010 11 = 1011 12 = 1100 13 = 1101 14 = 1110 15 = 1111 16 = 10000 17 = 10001 18 = 10010 19 = 10011 20 = 10100