Instead of using just 8 bits to represent a single colour we can instead sometimes use 12 or 16 bits. A 16 bit image can handle 65,536 discrete levels of information instead of the 256 levels that an 8 bit image can. As you can imagine the increased degree of subtlety that this makes available is dramatic. And, just as an 8 bit image is actually 24 bit when we're dealing with colour, a 16 bit image is actually called 48 bit (16X3) when speaking of a 3 colour composite. A 48 bit image is capable of billions of colours.