Defeating him rewards the player the Armor Harmer medal.
Byte Knight could come from White Knight, a person or thing that comes to someone's aid, or could just simply be byte and knight.
When the bounty begins, Byte Knight spawns is invincible, and a message in the lower left of the UI appears that says "FIND A WEAKNESS".
A ring is highlighted behind of Byte Knight, and the player must lure him into that ring to be able to hurt him. Night Cap is a great choice for this bounty, despite her low health. Her damage output is high enough to be able to do a large amount of damage to Byte Knight, and she is agile enough to be able to dodge his attacks.
The ring does move from place to place after a third of his health has been depleted, signalled by the message "THE RING HAS MOVED". After the one on top of the Uno Taco, the next ring is located to the lower left side of the inital spawn of Byte Knight, and the last in front of the Uno Taco. Simply lure him towards you by hitting him a few times and running away from him.