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Inherent in their design, computers understand only 1's and 0's, a language called binary. Henceforth, the storage of one value (either 1 or 0) is known as a bit. By universal acceptance, the proceeding unit of storage is 8, otherwise known as a byte (or an octet to avoid ambiguity- that issue being irrelevant to this topic).

Since the prefix kilo is defined in a decimal system (base 10) while the byte is defined in an octal (8), the two terms are not inherently compatible.

Since 1000 is not divisible by 8, the computer industry has accepted that the approximation in terminology is acceptable, while in definition, the closest divisible integer (1024) will be defined as a kilobyte.

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