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This lecture introduces logical circuits, which are composed of logic gates connected to perform basic operations on bits. The instructor explains the NOT, AND, OR, NAND, and NOR gates, and demonstrates how to combine them to create various circuits, such as adders. The XOR gate is also discussed for adding two bits. Practical aspects of logic gates and the creation of circuits using basic gates are covered. The lecture concludes with the design of an adder circuit for adding binary numbers, emphasizing the importance of understanding binary addition rules.