Digital die-cutting is a process that uses electronic machines to cut shapes and designs from various materials like paper, vinyl, and fabric. These machines are controlled by software, allowing users to create precise and intricate designs with ease. The technology is popular among crafters, designers, and small businesses for producing custom items such as stickers, greeting cards, and apparel. By using digital files, users can quickly replicate designs and make adjustments, enhancing creativity and efficiency in their projects.