[Punchy71]

   A complete noob question here. External DAC's seem very popular, but what exactly is a DAC and what does it do and why do I nee one? Some sources call it a "Digital Analog Converter" and others call it a "Digital Audio Converter". Which is correct? You see how confusing this can be for a noob?  =)
 
Thank you

 

[NA Blur]

A DAC is a Digital to Analog Converter.  It coverts those 1's and 0's stored on digital media like a CD to the analog signal that your headphones / speakers require.  A headphone / speaker cannot properly handle and will sometimes be damaged by a digital signal.
 
A typical audio train would be:
 
CD player --->External DAC ( Output will be analog ) ---> Amp ( higher amplitude analog signal ) ---> Speakers / Headphones
 
Other than the conversion process from digital to analog a DAC is also responsible for controller a lot of the noise in a system.  A good DAC will suppress noise from motors, fans, computer mice, and other internal workings.  A bad DAC may sound noisy with hiss/hum, or even start to blur the sound.
 
Hope that helps.
 
P.S.
 
If you can plug you headphones / speakers into a CD player then the CD player has a DAC in it.