What the DAC does
The processor performs decoding, routing, filtering and level management digitally. A DAC converts each digital output stream into analog voltage for a conventional power amplifier.
Why multichannel DAC design is difficult
A reference processor may need 16, 24 or more DAC channels with consistent clocks, power supplies, output stages and noise performance.
Moving the DAC downstream
AES/EBU or AoIP allows the digital stream to travel to a compatible amplifier or interface, where D/A conversion occurs closer to the power stage.
Measurements and audibility
Dynamic range, noise, linearity and output level matter, but the audible result also depends on gain structure, amplifier sensitivity and room noise floor.
Why system architecture matters more
A theoretically better DAC does not compensate for poor speaker placement, weak bass integration or incorrect gain structure. Treat conversion quality as one component of the full signal chain.