What is the significance of the term "resolution" in digital systems?

Resolution in digital systems is crucial as it indicates the smallest detectable change in output. This concept is particularly relevant in various fields such as digital imaging, audio processing, and data conversion. In digital imaging, for example, resolution defines how finely an image can be captured or displayed, influencing detail and clarity. In the context of digital-to-analog converters (DAC), resolution refers to the least significant bit (LSB) and determines how accurately the device can reproduce the intended analog signal.

The smallest detectable change signifies the system's ability to discern between different levels or values, which is essential for tasks that rely on precise measurements or outputs. Higher resolution implies the system can differentiate smaller changes, enhancing its performance and effectiveness in applications requiring high accuracy. This factor is vital in ensuring quality and fidelity in both data representation and processing.