http://en.wikipedia.org/wiki/Least_significant_bit
Least significant bit
The binary representation of decimal 149, with the lsb highlighted. The msb in an 8-bit binary number represents a value of 128 decimal. The lsb represents a value of 1.
In referencing specific bits within a binary number, it is common to assign each bit a bit number, ranging from zero upwards to one less than the number of bits in the number. However, the order used for this assignment may be in either direction (see Endianness). Both orderings are used (in different contexts), which is why "lsb" is often used to designate the units bit instead of a bit number, which has the potential for confusion.
By extension, the least significant bits (plural) are the bits of the number closest to, and including, the lsb.
The least significant bits have the useful property of changing rapidly if the number changes even slightly.
For example, if 1 (binary 00000001) is added to 3 (binary 00000011), the result will be 4 (binary 00000100) and three of the least significant bits will change (011 to 100). By contrast, the three most significant bits stay unchanged (000 to 000).
Least significant bits are frequently employed in pseudorandom number generators, hash functions and checksums.