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The basic answer.

Vocaloid is a singing synthesizer application. The software enables users to synthesize singing by typing in lyrics and melody. It uses synthesizing technology with specially recorded vocals of voice actors or singers.

Additional information

Its signal processing part developed through a joint research project between the Pompeu Fabra University in Spain and Japan's Yamaha Corporation, who backed the development financially—and later developed the software into the commercial product "Vocaloid".