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A byte is a piece of data composed of eight binary digits or bits. A bit is simply a one or a zero, and is used to communicate with computers. To improve human readability, bytes are typically represented in hexadecimal, which is denoted by the prefix ‘0x’, rather than binary, which is denoted by the prefix ‘0b’. Bitcoin transactions, scripts, public keys, and blocks are all series of bytes represented in hexadecimal format.