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If UTF-8 is an 8-bit encoding, why does it need 1-4 bytes?

On the Unicode site it's written that UTF-8 can be represented by 1-4 bytes. As I understand from this question UTF-8 is an 8-bit encoding.
So, what's the truth?
If it's an 8-bit encoding, then what's the difference between ASCII and UTF-8?
If it's not, then why is it called UTF-8 and why do we need UTF-16 and others if they occupy the same memory?


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