Inside the CD player, there is a good bit of computer technology involved in forming the data into understandable data blocks and sending them either to the DAC (in the case of an audio CD) or to the computer (in the case of a CD-ROM drive).
The fundamental job of the CD player is to focus the laser on the track of bumps. The laser beam passes through the polycarbonate layer, reflects off the aluminum layer and hits an opto-electronic device that detects changes in light. The bumps reflect light differently than the "lands" (the rest of the aluminum layer), and the opto-electronic sensor detects that change in reflectivity. The electronics in the drive interpret the changes in reflectivity in order to read the bits that make up the bytes.
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