Bayer "demosaicing" is the process of translating this Bayer array of primary colors into a final image which contains full color information at each pixel. How is this possible if the camera is unable to directly measure full color? One way of understanding this is to instead think of each 2x2 array of red, green and blue as a single full color cavity.
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This would work fine, however most cameras take additional steps to extract even more image information from this color array. If the camera treated all of the colors in each 2x2 array as having landed in the same place, then it would only be able achieve half the resolution in both the horizontal and vertical directions. On the other hand, if a camera computed the color using several overlapping 2x2 arrays, then it could achieve a higher resolution than would be possible with a single set of 2x2 arrays. The following combination of overlapping 2x2 arrays could be used to extract more image information.
Note how we did not calculate image information at the very edges of the array, since we assumed the image continued on in each direction. If these were actually the edges of the cavity array, then calculations here would be less accurate, since there are no longer pixels on all sides. This is no problem, since information at the very edges of an image can easily be cropped out for cameras with millions of pixels.
Other demosaicing algorithms exist which can extract slightly more resolution, produce images which are less noisy, or adapt to best approximate the image at each location.
