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Quality is the difference. When playing sound with 8-bit sample resolution, we have the sound wave encoded with 256 levels what is not very accurate. Analog circuits placed after digital to analog converter (DAC) can smooth the wave, but it also looses some details.

When 16-bit samples are used, the sound is encoded with 65536 levels. This allows to record and play music with greater accuracy. It souns then much better.

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