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What is Digital Literacy? The ability to use digital technology, communication tools or networks to locate, evaluate, use and create information. 1 The ability to understand and use information in multiple formats from a wide range of sources when it is presented via computers. 2  A person's ability to perform tasks effectively in a digital environment... Literacy includes the ability to read and interpret media, to reproduce data and images through digital manipulation, and to evaluate and apply new knowledge gained from digital environments. 3