tractorboy:Nejc Trdin: all such (modern) transmissions have some kind of error detection and correction algorithms implemented.
i.e.
TCP/IP: Each Ethernet frame carries a CRC-32 checksum. The receiver discards frames if their checksums do not match. And many more...
And so in the end you get bit-perfect information on the other end (but some packets of incoming information were discarded because of error correction). Everything must be fast enough, so an user can think that it is real-time.
I wondered if that were the case. Would that also be true of a NAS feeding a DAC? If so, how is the error correction handled? (i.e. without a PC in the picture)
Every (digital) unit in your system has some kind of a CPU installed (CD,DVD,TV,DAC...). In that case you do not need a PC, because basic error correction can be handled by hardware.
The same goes for the PC. i.e. the hard drive has it's own "CPU", which has so called SECDED algorithm (single error correction double error detection). Other PC components have similar algorithms.
Obviously you don't need these algorithms in analog transmissions. That is why we put a lot on cables, so we keep the errors down.