What is bit datatype and what’s the information that can be stored inside a bit column?

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Bit datatype is used to store boolean information like 1 or 0 (true or false). Until SQL Server
6.5 bit datatype could hold either a 1 or 0 and there was no support for NULL. But from SQL
Server 7.0 onwards, bit datatype can represent a third state, which is NULL.