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In computing and telecommunications, a unit of information is the capacity of some standard data storage system or communication channel, used to measure the capacities of other systems and channels. In information theory, units of information are also used to measure the entropy of random variables and information contained in messages.
The most commonly used units of data storage capacity are the bit, the capacity of a system that has only two states, and the byte (or octet), which is equivalent to eight bits. Multiples of these units can be formed from these with the SI prefixes (power-of-ten prefixes) or the newer IEC binary prefixes (power-of-two prefixes). In dimensional analysis, information is considered to be a dimensionless quantity.
In 1928, Ralph Hartley observed a fundamental storage principle, which was further formalized by Claude Shannon in 1945: the information that can be stored in a system is proportional to the logarithm of N possible states of that system, denoted logbN. Changing the base of the logarithm from b to a different number c has the effect of multiplying the value of the logarithm by a fixed constant, namely logcN = (logcb) logbN. Therefore, the choice of the base b determines the unit used to measure information. In particular, if b is a positive integer, then the unit is the amount of information that can be stored in a system with N possible states.