A byte is a unit of digital information that typically consists of eight bits. It is the basic building block for data storage and processing in computers and other electronic devices. Each bit can represent a value of either 0 or 1, so a byte can represent 256 different values, ranging from 0 to 255. Bytes are commonly used to encode characters in text, such as letters and symbols, through systems like ASCII or UTF-8. They also play a crucial role in measuring file sizes, memory capacity, and data transfer rates in computing and telecommunications.