Almost everything in the world can be described or represented in one of two forms: analog or digital. The principal feature of analog representations is that they are continuous. In contrast, digital representations consist of values measured at discrete intervals.
Digital watches are called digital because they go from one value to the next without displaying all intermediate values. Consequently, they can display only a finite number of times of the day. In contrast, watches with hands are analog, because the hands move continuously around the clock face. As the minute hand goes around, it not only touches the numbers 1 through 12, but also the infinite number of points in between.
Early attempts at building computers used analog techniques, but accuracy and reliability were not good enough. Today, almost all computers are digital.