Computer chips are so tiny and intricate that it may be difficult to recall the physical principles they are based on. They aren't just a bunch of ever-increasing numbers. For a practical (well virtual) example, take a look at the most recent version of a processor for computers that was developed exclusively inside the Minecraft game engine.
Minecraft builder "Sammyuri" spent seven months developing what they call the Chungus 2, an enormously complex computer processor that is within the Minecraft game engine. This isn't the first time a computer processor has been rebuilt inside Minecraft however, the Chungus 2 (Computation Humongous Unconventional Number and Graphics Unit) could very well be the largest and most complex, based on an 8-bit processor, with a one hertz clock speed and an adabyte of RAM.
Minecraft processors utilize the physics engine of the game to recreate the architecture of real processors on a macro level using materials such as redstone dust, torchers, pistons, repeaters and other basic machines. To give you a sense scale, each block in Minecraft is one virtual millimeter in size. This means it would be roughly the same size as the size of a cruise ship or a skyscraper if this build could be replicated in the real world.
When connected to an in-game 32x32 "screen" and "controller" (manipulated by the Minecraft player avatar jumping on buttons of the size of blocks), the Chungus 2 can play interchangeable 2D games such as Tetris, Snake, or even a graphing calculator. Some programs need the Minecraft server to be artificially accelerated to make the 1Hz processor fast enough to run. Each program is also built entirely in Minecraft and connects to the computer in the same way as a game cartridge the size of the freight train.
The project is an incredible application of computer science in action, developed in a way that makes its concepts tangible and clear. The video that demonstrates the Chungus 2 is impressive enough. However, if you'd like to experience it in action, you can download it and run it on your server at mc.openredstone.org. If we hold off for several years, we might just get a Minecraft CPU that is capable enough to run Minecraft and at that point the universe will probably collapse.