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This lecture introduces basic logic elements used to construct specialized machines, such as microcontrollers. It covers logical gates like the inverter, AND gate, and XOR gate, explaining their truth tables and applications. The lecture also delves into sequential elements, focusing on the RS flip-flop and D flip-flop, showcasing how they store and transfer information. The concept of clock signals in sequential circuits is discussed, along with the design of shift registers and counters. The importance of stable states, signal sampling, and signal propagation in digital circuits is emphasized, leading to the understanding of memory elements and binary counting. The lecture concludes with a practical exercise on shift registers and binary counting circuits.