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t was probably the worst prediction in history. Back in the 1940s, Thomas Watson, boss of the giant IBM Corporation, reputedly forecast that the world would need no more than "about five computers." Six decades later and the global population of computers has now risen to something like one billion machines!

To be fair to Watson, computers have changed enormously in that time. In the 1940s, they were giant scientific and military behemoths commissioned by the government at a cost of millions of dollars apiece; today, most computers are not even recognizable as such: they are embedded in everything from microwave ovens to cellphones and digital radios. What makes computers flexible enough to work in all these different appliances? How come they are so phenomenally useful? And how exactly do they work? Let's take a closer look!

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