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A digital-to-analog converter (DAC) is a device, usually consisting of a single chip, for converting binary or digital code into an analog signal. A DAC device converts an abstract finite precise number, typically a fixed-point binary number, into a definite physical variable such as voltage or pressure.
An example of a DAC device is a modem. A modem requires DAC to convert data to analog signals, which can be carried by a telephone wire. Another example of a DAC device is a video adapter. A video adapter requires a single chip called a random access memory digital to analog converter (RAMDAC), which converts digital data to an analog signal displayed or processed by a monitor or a display screen.
Conversion in DAC is common for digital devices and computer-based systems such as modems, video adapters and household appliances. DACs translate digital data into real-world signals such as speech, picture and videos, which are more understandable and usable by humans than 0 and 1 digital signals.