A Digital to Analog Converter, or DAC, takes your digital content and transforms it into analog so that your system can amplify it and play it through your speakers. If you think you already have DACs in your system, you would be correct. Anything that can accept a digital signal and output sound must include a DAC. This includes your phone, MP3 player, receiver, AV processor, computer, laptop, CD/DVD/Blu-ray player with analog outputs, wireless speakers, clock radios, and more.