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Here, you can two converters: a digital to an analog converter (DA) and an analog to digital converter (AD). There are two switches at the beginning of the circuit, one green and one orange. The switches play the role of bits, a 1 if it's HIGH and 0 if it's LOW. You can switch it to a 1 if it's turned to the right and 0 when you switch it to the left. The color green is the most significant bit (MSB), and the orange is the least significant bit (LSB). The first circuit creates bits and converts it to an analog voltage seen with a voltmeter on screen. Simultaneously, it converts it back to bits shown with LED's with the green LED being the MSB and the orange LED being the LSB.
