Bits are the basic units of information in computing representing either 1 or 0. 8 bits together form a byte, which can represent a single character. Common storage measurements are kilobytes (KB), megabytes (MB), gigabytes (GB), and terabytes (TB) which are powers of 1000 or 1024 bytes. A computer's processor understands information by interpreting patterns of transistors being on or off, with a transistor on representing 1 and off representing 0.