Simply put MIDI is digital sheet music. The concept is that you can play the music on your keyboard and then have a separate MIDI converter with lots of different sounds you can chose between. Or you can record small snippets of MIDI data and then later pick which instruments it should sound like. It used to be that MIDI had its own round connector to connect the different devices together. But now most just use USB to connect to a computer. You have lots of different music programs for computers that you can use to record MIDI input from your digital piano and synthesise it to various different instruments.
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