It is a method of counting, but instead of using placeholders for powers of 10, we use them for powers of 16. We count 1,2,3,...,9,A,B,C,D,E,F (here, A,...F represent 10 through 15). 16 in hexadecimal is written as 10, then 17 is 11, etc.
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0xFFEF + 1 = 0xFFF0.
That can't be an octal number; it has an 8 in it.
Computers do much of their processing in binary. Hexadecimal is used as a kind of shortcut (easier to read for humans): each hexadecimal digit represents four binary digits.
Hexa-decimal representation is given by, * 24 - 18 * 25 - 19 * 30 - 1E
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