This paper introduces the first version of the QBIT theory of consciousness which is based on inspirations and insights from Quantum mechanics, Biology, Information theory, and Thermodynamics. The ultimate goal of the QBIT theory is to find scientifically correct answers to the following four questions: What is the nature of qualia? How are qualia generated? Why are qualia subjective? Why does a quale have a particular meaning?The theory, in its first version, proposes tentative answers to these four fundamental questions about consciousness. According to the QBIT theory qualia are quantum information encoded in maximally entangled pure states. Qualia are generated when robustness of a representation exceeds a certain threshold. Qualia are subjective because maximally entangled pure states are not shareable. The quality or meaning of a particular quale stems from information compression via the matching and unification of patterns.