A device that converts digital signals into analog signals is known as a Bit Digital to Analog Converter (DAC). This converter plays a crucial role in various applications, including telecommunications, audio equipment, and medical devices. It enables the processing and transmission of digital data in formats that can be understood by human senses. The key function of a DAC is to take binary-coded digital information and convert it into an equivalent analog signal. This conversion process is essential for applications where the output needs to be a continuous signal rather than discrete digital values.