A bit is the smallest unit of information understood by a computer. A bit can take a value of 0 or 1. A byte is made up of 8 bits which is large enough to contain a single character. For example the character 2 would be equivalent to "00000010" when represented in bits. A Kilobyte is equivalent to 1024 bytes. A Megabyte is equivalent to 1024 Kilobytes. A Gigabyte is equivalent to 1024 Megabytes.