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Add up all the bits in a "word" - usually in 7 bits of an 8 but byte, and use the top bit in the byte to store the result. If there is an even number of bits set, the "parity bit" is 0, and if it is odd, the "parity bit" should be 1.

Electronic circuits can easily be made that generates this on say a COM port, that transmits one bit at a time and makes it possible to detect errors in the communication. It is also used in RAM memory - also to identify faulty memory chips. On disks they use more than 1 bit, and will here call it "ECC" - "Error Correction Circuitry". This is based on 3 bits that enables reconstructing the byte, not just detect an error.

Dense storage and fast transmission is always a trade-off with the correct stored data or data transmitted. Where the errors can be corrected without reducing capacity this is used.

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