For \(m>n\) we have \(0\le a_m-a_n<10^{-n}\), so it is Cauchy. Its natural limit, \(\sqrt2\), is irrational, so there is no limit in \(\mathbb Q\): \(\mathbb Q\) is not complete.
A sequence \((a_n)\) is Cauchy if, for every \(\varepsilon>0\), there is an index \(N\) beyond which any two terms are less than \(\varepsilon\) apart.