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"External instruments...no", obviously it doesn't mean that I can't record my bass, git, and drums into the program...so what's an external instrument?
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This would have to do with routing the Cubase track back to an external instrument like a keyboard or, like your next question, hardware effects, and then back into Cubase. It would work like the effects loop on a guitar amplifier. I think that it would only be useful if you were doing some kind of big time live performance.
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"External Effects...no", What does that mean? I can't insert any effects, like a delay, etc. into a channel once it's already recorded?
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See above. This is Cubase routing where a signal goes into Cubase, then leaves the computer, goes through a hardware effects rack, and then returns to Cubase. I've never heard of anyone doing that.
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"Sidechain Inputs...no" Again, I'm unclear.
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Ok, this is a little more useful and practical, but not a big deal. Hardware compressors often have a sidechain input where one signal can affect the compression level of the other. For example ducking is when say a guy on the radio starts talking and the music gets quieter. It can be useful in software compression by say, letting the kick compress the bass or whatever. Again, it comes down to sophisticated routing. There are some software compressors that could take advantage of a sidechain capability. Obviously, if you don't know what a sidechain input is, it's probably not going to be a deal breaker.
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