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Units of Information

A bit is a binary digit, the smallest increment of data on a computer. A bit can hold only one of two values: 0 or 1, corresponding to the electrical values of off or on, respectively.

Because bits are so small, you rarely work with information one bit at a time. Bits are usually assembled into a group of eight to form a byte. A byte contains enough information to store a single ASCII character, like "h".

TED Talk:

How computer memory works

Useful information (please also do your own research)

Eight bits are known as a byte.

The binary unit system is as follows:

8 bits 1 byte (B)
1,000 bytes (1,000 B) 1 kilobyte (KB)
1,000 kilobytes (1,000 KB) 1 megabyte (MB)
1,000 megabytes (1,000 MB) 1 gigabyte (GB)
1,000 gigabytes (1,000 GB) 1 terabyte (TB)
1,000 terabytes (1,000 TB) 1 petabyte (PB)