-Today most digital images and imaging devices use 8 bits per channel thus limiting the dynamic range of the device to two orders of magnitude (actually 256 levels), while human eye can adapt to lighting conditions varying by ten orders of magnitude. When we take photographs of a real world scene bright regions may be overexposed, while the dark ones may be underexposed, so we can't capture all details using a single exposure. HDR imaging works with images that use more that 8 bits per channel (usually 32-bit float values), allowing much wider dynamic range.
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