In the decimal system, the first digit is the "one's" place, the next digit to the left is the "ten's" place, the next is the "hundred's" place, etc. In hexadecimal, each digit can be 16 values, not 10. This means the digits have the "one's" place, the "sixteen's" place, and the next one is the "256's" place. So 1h = 1 decimal, 10h = 16 decimal, and 100h = 256 in decimal.