what interests me most is how this is considered an analog conversion. It is indeed a very ingenious system, but resulting 'signal' does not seem analog to me. The steps of the blue bar are still discrete and it cannot take on any values in between the stepsize. I thought the point of an analog conversion was to turn a digital signal back into an analog signal, this would mean you somehow have to store the information about the waveform in the bits, and recreate a signal with an infinitely small stepsize (or continous if you will).