The product created by computers is usually in digital format because computers can only identify digital information. On the other hand, some output devices only support analog input, necessitating the use of a digital-to-analog converter (DAC).

The most prevalent use of a telecommunications device is the telephone. The sound device, which has an integrated DAC, is usually where this translation happens. An analog signal, which could be an electrical charge, is created from the digital signal, which is essentially a sequence of ones and zeros. Most speaker ports can detect this electrical charge, allowing it to be transmitted to a speaker system.

Video data are also converted using DACs. Analog ports were previously used by the majority of video screens, including Televisions and computer panels. Digital screens with DVI and HDMI interfaces have only recently become widely used. As a result, the digital video data needs to be transformed into an analog signal before it can be transmitted by a computer to an analog monitor. For this reason, a DAC is a standard feature on all video devices that have an audio output (like a VGA link).

A signal's integrity could be lost whenever it is changed from one type to another. Therefore, whether you are transforming audio or video data, having a high-quality DAC is essential. The analog-to-digital converter, or ADC, is necessary when making the reverse change, which is also true.