The term 'EIGHT BASED ON' is used to refer to two different systems of counting. The first is Octal, which is a base 8 numbering system that uses the digits 0-7. Octal is commonly used in computing and programming. The second is OCTET, which is a group of 8 bits that are used to represent a single character or number in computing. Both Octal and OCTET are related to the number 8, as they are both based on it.