Google Ads enhanced conversions and first-party data

With the increase in smart bidding, broad match and Performance Max we can see Google Ads moving toward audience signals and first-party data audiences. There are ways CRM data can be fed into Google Analytics before feeding this data back into Google Ads, or it can be directly sent to Google Ads. What are enhanced conversions in Google Ads? The personal data collected is first-party data and shared with Google. Enhanced conversions then files a single user for this visitor using this first-party data.