The difference between analog and digital is how far removed you are in terms of level of abstraction from physical reality when modeling some problem. In particular, it typically refers to some kind of quantization or discretization being done.
Digital signals are for example artificially discretized – they’re “chunked” in a way such that a corresponding digital system of some specification we also lay out for them can process them.
The difference between some natural discretization of an analog signal (e.g. the raw number of photons in a timeframe) and the artificial discretization of some other, digital signal, is the intention, the control. We impose artificial rules on top of physical reality, and manage to stay within those rules. We operate on representations, instead of representing a given problem in physical reality (with actual “analogues” – hence the name).
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