A digital-to-analog converter (DAC) is an electronic device that converts a digital signal into an analog electrical signal. This process is essential in various applications, including audio systems, telecommunications, and computer interfaces, where analog signals are required to transmit or process information. The conversion occurs by generating an output voltage proportional to the input binary code. The DAC's resolution determines the precision of the converted analog signal, with higher resolutions offering more precise conversions but requiring larger circuitry and increased complexity.