Which bit depth is typically used for compressed audio or signaling?

The selection of an 8-bit depth for compressed audio or signaling is often made because it allows for smaller file sizes and reduced bandwidth consumption, which are essential in many audio applications, such as streaming or telecommunication. While 8-bit audio has limited dynamic range and lower sound quality compared to higher bit depths, such as 16-bit or 24-bit, it can still be sufficient for certain uses where the overall fidelity is not the primary concern. This is particularly true in situations where audio clarity matters less than transmission efficiency, such as in some forms of radio communication or early video game audio formats. Thus, an 8-bit depth strikes a balance between quality and efficiency for those specific contexts.