There are many ways to implement multi bit converters (ADCs & DACs) in hardware. Different designs vary in the number of conversion bits (accuracy) and speed of conversion required for a specific application. In fundamental terms, ADC converters compare the input signal amplitude level to a reference voltage. Using the configuration of a voltage divider, by incorporating a network of resistors, the converters ?chop? the input voltage into different voltage references to produce an encoded binary word. The input voltage, therefore, is never allowed to exceed the reference voltage, otherwise an error in the actual conversion is introduced. Some ADCs also incorporate a sample and hold (S/H) circuit to their input in order to hold the input voltage level for a sufficient amount of time for the ADC to convert it. This circuit is basically a capacitor that charges up holding that value. Other types of converters include the integrating converter and dynamic watching converter. DACs on the other hand sum up all the bits at their weighing level (the MSB carries half the amplitude of the entire signal) by comparing them to a reference voltage, thus producing a continuous signal (analog) at their output which varies from 0V to a maximum equal to the reference voltage. The scope of this project, however, does not allow any deeper exploration at the hardware level.