You can make a digital “potensiometer” by having a lot of resistors in parallel, and a way to open or close the paths (for example with a transistor). 5 identical resistors in parallel gets you 20% the amount of resistance. Block the path to one of them and you have 25%, block another and you have 33%, etc.
You can mix and match resistors and make a more complex circuit to get smaller steps, and there are integrated circuits that basically have everything needed to do this in one single chip.
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