The information about a video display is stored in memory, digitally, as ones and zeros.
In order to communicate this information to the monitor, which needs an analog signal, a special logic circuit called a RAM Digital to Analog Converter, or RAMDAC, is used to take the digital information from memory and convert it into an analog signal that is then sent to the monitor.
The speed and quality of the RAMDAC has a direct effect on the maximum resolution, color depth, and refresh rate supported by the video card.
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