An Integral Transform, that is the Laplace Transform but Discrete-Time.
Related to the Laplace Transform by , where is the sampling interval. This means the imaginary axis in the -plane maps to the unit circle in the -plane.
The Z Transform converts Discrete Convolution into multiplication, turning difference equations into polynomial equations in , analogous to how the Laplace Transform handles differential equations.
Stability
Poles of inside the unit circle () correspond to a Stable system, analogous to for the Laplace Transform.