Describe the role of the BCD (Binary-Coded Decimal) system in digital electronics and its applications in devices like digital clocks and calculators.

BCD encodes each decimal digit as a separate binary value, facilitating easy conversion between human-readable numbers and binary systems. This system is used in digital clocks, calculators, and other devices requiring precise decimal representation. BCD simplifies the design of digital circuits for arithmetic operations, as each decimal digit is independently processed, reducing complexity and error rates.