8 Bit Color Explained

A client asked us to explain what is meant by 8 bit color, here is  my understanding:

Computers communicate data through the use of bits. One bit of data 0, 1, can communicate two instructions, black or white. Two bits can give four instructions, (01, 11, 01, and 10) 8 bits can record 256 possible values (2x2x2x2x2x2x2x2) = 8 bit each channel for RGB (24 bit) can communicate 16.7 million colors. Also, 8 bits = 1 byte.

In other words, from a binary perspective, when we say a pixel has a value of:

R=255

G=255

B=255,

in binary its:

11101011

11101011

11101011