Connecting digital circuitry to sensor devices is simple if the sensor devices are inherently digital themselves. Switches, relays, and encoders are easily interfaced with gate circuits due to the on/off nature of their signals. However, when analog devices are involved, interfacing becomes much more complex. What is needed is a way to electronically translate analog signals into digital (binary) quantities, and visa-versa. An analog-to-digital converter, or ADC, performs the former task while a digital-to-analog converter, or DAC, performs the latter.

An ADC inputs an analog electrical signal such as voltage or current and outputs a binary number. In block diagram form, it can be represented as such:

A DAC, on the other hand, inputs a binary number and outputs an analog voltage or current signal. In block diagram form, it looks like this:

Together, they are often used in digital systems to provide complete interface with analog sensors and output devices for control systems such as those used in automotive engine controls:

It is much easier to convert a digital signal into an analog signal than it is to do the reverse. Therefore, we will begin with DAC circuitry and then move to ADC circuitry.