Digital storytelling allows anyone to tell stories in their own way using computers and personal photographs. It involves creating short films that are 3-5 minutes long with narration, sound effects, music, and video transitions. Teachers recommend digital storytelling for students as it helps them develop 21st century skills like synthesizing and using various media to express themselves. Creating an effective digital story involves finding a story, mapping it out, capturing audience attention, using your own voice and choosing images and sounds carefully.