The DAE file extension represents a Digital Asset Exchange file, which is a COLLADA (COLLAborative Design Activity) file format. COLLADA is an open standard XML-based schema that facilitates the exchange of digital assets between various graphics software applications. DAE files store 3D models, textures, animations, and other related data. They are commonly used in video games, architectural visualization, and 3D modeling software. The format aims to provide interoperability, allowing artists and developers to seamlessly transfer their work between different tools without losing important information or fidelity. DAE files can contain complex scene graphs, geometric data (meshes, curves, surfaces), material definitions, lighting information, and animation data, making them a versatile format for representing a wide range of 3D content. The COLLADA specification is maintained by the Khronos Group, ensuring its continued development and adoption within the industry. It's a widely supported format, making it a good choice for archiving and sharing 3D assets.