A DAC is a circuit that converts digital measures of audio
amplitude in discrete steps into a continuous analog electrical equivalent of
the sound to be reproduced. The amplitude is a digital number (like a 16 bit
word) and the steps occur based on the sampling rate (like 48,000 times per
second). This process is very much like an endless conveyer belt with empty
one gallon jugs on it, moving by a filling station. The size of the jug is
fixed, the rate they pass by is determined by the sampling rate. The goal of
the DAC is to fill each jug to exactly the right level specified by the music.
There are three techniques used to accomplish this; Delta Sigma, Ladder, and
the MSB Sign Magnitude Ladder.
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Delta Sigma DACs (Single Bit)
Each sample or jug is filled to the right level with many
measuring cups, poured to reach the target level.
A “one bit” measuring cup is either full or empty. With 64
times oversampling, the cup is only 1/64th the volume of the jug. This rather
crude cup does not come close to being accurate enough. The cup would need to
be 1/16,777,216th the volume of the jug to be accurate.

Line speed is like Sampling Rate (48,000 per second)
By keeping a running tally of the error and by going a little
over and a little under in many samples, a very accurate average is
reached, but only with an aggressive filter applied to the output.
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Ladder DAC
A ladder DAC is different in that instead of a single
measuring cup (or bit), a whole array of cups are available, from very small to
very large.

Any combination of cups can be used to fill each jug to
exactly the right level.
No filtering is required but the accuracy is defined by the
cumulative error of all the cups used.
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MSB Sign Magnitude Ladder DAC
The MSB Sign Magnitude Ladder DAC is like a Ladder DAC but
refined in two ways.
Because the jars are typically 1/2 full when finished, we
start with very accurately 1/2 filled containers instead of empty ones. From
there, we again use the wide range of measuring cups to either add or take away
from each jar.

Again each jar is filled exactly so no filtering is needed,
but because we only had to add or subtract a little bit our accuracy is higher.
Because our hearing is most sensitive to low level sound (sound near the 1/2
full zero crossing) our DAC is most accurate near 1/2 full where we use the
smallest and most accurate measuring cups.
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