Digital jewelry is fashion jewelry that contains embedded computer technology to provide wireless connectivity and computing capabilities. It consists of components found in mobile phones miniaturized and embedded in jewelry items like rings, bracelets, and necklaces. Examples presented include an IBM magic decoder ring that flashes lights to handle phone calls and emails, a bracelet with an LED or LCD display to view information, and a necklace prototype displaying the entire Roman alphabet. Digital jewelry provides advantages like convenience and security by unlocking doors or logging into computers like a Java ring. Challenges include battery life and cost, but digital jewelry is predicted to become a future trend as computers are worn instead of used on desktops.