The differences between analog and digital signals lie in how they encode and transmit information. Analog signals are continuous waveforms that represent physical quantities, while digital signals use discrete values or binary code to represent data. Analog communications are more susceptible to noise and distortion, leading to a loss of quality in transmission. Conversely, digital signals offer improved signal integrity and can be compressed, allowing for better storage and transmission efficiency. As technology has advanced, digital signals have become predominant due to their reliability and flexibility.