Sequential Logic
A sequential circuit has the key addition of state, or memory: elements that remember the past.

The circuit below detects a particular sequence of input values.
Note that when top input is 1 and bottom input is 0,
the output can be 0 or 1 depending on the current state (values in D flip-flops).

In fact, the output is set to 1,
if the top input stays at 1
while the bottom input goes from 0 to 1,
then to 0 again.
You can open the sequential.circ file in Logisim to examine this circuit.