Digital-to-Analog Conversion (DAC) is the process of converting digital signals, which are represented as binary numbers, into analog signals that can be understood by devices like speakers or televisions. Digital signals consist of discrete values, while analog signals are continuous and can represent a range of values. This conversion is essential for playing music or video, as most media is stored in digital formats. DACs are commonly found in various electronic devices, including smartphones, computers, and audio equipment. The quality of a DAC can significantly affect the sound or image quality, making it an important component in high-fidelity systems.