A DAC, or Digital-to-Analog Converter, is an electronic device that converts digital signals into analog signals. Digital signals are composed of discrete values, while analog signals are continuous. DACs are essential in various applications, such as audio playback, where they transform digital audio files into sound waves that can be heard through speakers or headphones. DACs are commonly found in devices like smartphones, computers, and digital audio players. They play a crucial role in ensuring high-quality sound reproduction by accurately converting the digital data into a format that can be understood by analog systems.