I studied the official solution to a Putnam competition problem and got stuck in a step, which is summarized as follows:
For $0\le x<1$, we have $$ \sum_{n=0}^\infty\log(1+x^{2^n}) = -\log(1-x)\tag{1} $$
My two closely related questions below are based on the justification of (1).
The solution gave the following argument for justifying (1):
Due to the uniqueness of binary expansions of nonnegative integers, we have the identity of formal power series $$ \frac{1}{1-x}=\prod_{n=0}^{\infty}\left(1+x^{2^{n}}\right)\,;\tag{2} $$ the product converges absolutely for $0\le x<1$.
But I don't understand what this means. Question 1: In particular, how is "the uniqueness of binary expansions of nonnegative integers" used here?
Naively, if we treat the infinite sum as a finite sum and apply (2), then we have $$ \sum_{n=0}^\infty\log(1+x^{2^n}) = \log \prod_{n=0}^{\infty}\left(1+x^{2^{n}}\right) = \log \frac{1}{1-x} = -\log (1-x) \tag{3} $$
But Question 2: how can one justify the first equal sign?
Note that for $x\in [0,1)$, we have
$$\begin{align} \left|\sum_{n=1}^N \log(1+x^{2^n})\right|&\le \sum_{n=1}^N\left|\log(1+x^{2^n})\right|\\\\ &\le \sum_{n=1}^N x^{2^n}\\\\ &\le \sum_{n=1}^N x^n\\\\ &=\frac{x-x^{N+1}}{1-x} \end{align}$$
Hence, for $x\in [0,1)$, the series $\sum_{n=1}^\infty \log(1+x^{2^n})$ converges absolutely.
Furthermore, we can write
$$\sum_{n=1}^N \log(1+x^{2^n})=\log\left(\prod_{n=1}^N (1+x^{2^n})\right)$$
and inasmuch as the logarithm is continuous,
$$\begin{align} \sum_{n=1}^\infty \log(1+x^{2^n})&=\lim_{N\to\infty }\log\left(\prod_{n=1}^N (1+x^{2^n})\right)\\\\ &=\log\left(\lim_{N\to\infty }\prod_{n=1}^N (1+x^{2^n})\right)\\\\ &=\log\left(\prod_{n=1}^\infty (1+x^{2^n})\right) \end{align}$$