A digital camera works by splitting the image up into a big grid. Something inside the camera called a charged-coupled device (or CCD for short) then measures the intensity of the light in each small square (called a pixel) of the grid and gives it a number. This information is then stored as a large sequence of numbers so when your computer reads the information it rebuilds the image by putting the right colour into each pixel. More pixels means a better quality image (mostly!). You’ll often see cameras quoted with a certain ‘megapixel’ number. Mega just means million so a 5 megapixel camera takes images with 5 million pixels in them.
As for the pinhole camera, I really don’t know but I’d guess some sort of card?
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