Explain the principles and applications of digital-to-analog converters (DACs) and analog-to-digital converters (ADCs) in digital systems, including their roles in data conversion, signal processing, and interface bridging.

Digital-to-analog converters (DACs) convert digital signals into analog voltages or currents, while analog-to-digital converters (ADCs) convert analog signals into digital representations. They are essential components in digital systems for interfacing with the analog world, processing sensor data, generating analog signals, and implementing digital signal processing algorithms.