What does "least significant bit" refer to in data representation?

The term "least significant bit" (LSB) refers to the last bit in a byte, which is the rightmost bit when reading binary data. This bit holds the smallest value in the binary representation. For example, in an 8-bit byte, the LSB contributes only 1 (2^0) to the overall value, while the leftmost bit, or most significant bit (MSB), contributes the largest value—128 in an 8-bit byte (2^7).

Understanding the significance of bits is crucial in various applications including data encoding, image processing, and digital communications. The least significant bit is particularly relevant in situations where precision is crucial or when making modifications to data, as changes to the LSB can subtly affect the overall value without significantly altering the represented data.