Digital jewellery refers to fashion jewellery that has embedded technology allowing wireless communication. IBM has prototyped a digital jewellery phone consisting of earrings that act as speakers, a necklace with a microphone, a ring that flashes to indicate calls, and a bracelet display. The components have minimal size and interconnect wirelessly, potentially using Bluetooth. Digital jewellery provides convenience while maintaining fashion and could evolve to fully integrate computer elements with wearable form factors, though challenges remain regarding charging and costs.