Atmega8 or Atmega328p can be used directly on boards without using the whole Arduino hardware.
All is needed are
- Atmega8 or Atmega328p IC
- 16 Mhz crystal
- Two 22pf capacitor
The advantage is lesser hardware and footprint in actual projects.
See here for Burning Arduino Bootloader to Atmega8 or other Atmega and Atmega8 to Arduino pin mapping
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