The maximum bit depth of the transducer determines how accurately the microphone, or its built-in analog-to-digital converter, can convert the sound wave into digital data. Sound is essentially an analogue signal, i.e. a continuous wave. In order for a computer to work with it, it must be converted into digital form, which consists of a series of steps. The bit depth indicates how many of these steps, or volume levels, are available to describe the original sound. You can think of it like a staircase that copies a smooth slope - the more steps it has, the more faithfully it mimics the slope. A value of 16 bits means approximately 65,000 levels, which is equivalent to the quality of a standard CD. The more common recording value, 24 bits, already offers over 16 million levels. Higher bit depth provides greater dynamic range, the difference between the quietest and loudest sound that can be recorded without distortion. This makes it possible to record very quiet sounds without losing them in digital noise, while there is less risk of loud passages being digitally clipped and distorted, which is known as clipping. Some DACs work with 32-bit floating point, which virtually eliminates this risk of digital distortion. The greater bit depth therefore allows a technically cleaner recording to be made with greater flexibility for subsequent editing.