Computers can only understand binary (that is 0s or 1s). I want to know Is there any way that computers can understand more than 2 states. I know that It is much harder to build components that use more than two states/levels/whatever. Of course If we have more than two states we would be able ...
@DavidZ: I think it might be better for electronics.se. This is more about engineering tradeoffs between noise-margin, size, power and switching speed than about digital vs. analog.
@DavidZ I agree with @WanderingLogic; the CS answer is "we don't care in which system we compute" (other machines were built, after all!) but that's not what the OP wants.