How it works
Every unit is defined as a number of bytes, then values convert through bytes as a common base. Decimal units — kilobyte, megabyte, gigabyte, terabyte — scale by 1000 each step. Binary units — kibibyte, mebibyte, gibibyte, tebibyte — scale by 1024 each step instead.
Why two systems exist
Computer memory is naturally organized in powers of two, which is why 1024-based units took hold early in computing. Storage manufacturers and networking standards later settled on the more familiar decimal system, leaving two different conventions in everyday use for what people often call the same thing.
Reading a “missing” gigabyte
A 500 GB drive (500,000,000,000 bytes, decimal) shows as roughly 465.7 GiB in an operating system that reports binary units but labels them “GB” — no storage is actually missing, only the unit definition changed.