At the end the compiler takes the english written computer code and turns it into assembly code. These are series of instructions that the core processing unit understands in a way that it can send out electrical signals to specific parts of the computer. 1 means 5V 0 means 0V. To handle the logic there are things called flip-flops (yes, funny name). These are actual electrical circuts that handle the basics of logic. Even you can easily build one as they are really simple. (Few wires, switches)
The thing is that you need to make these extremely small so that a small cpu can be powerful enough in such a small device.
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