This article is from the Audio Professional FAQ, by with numerous contributions by Gabe M. Wiener others.
A digital audio workstation (DAW) is one of our newest audio buzzwords,
and applies to nearly any computer system that is meant to handle or
process digital audio in some way. For the most part however, the
term refers to computer-based nonlinear editing systems. These systems
can comprise a $500 board that gets thrown into a PC, or can refer to
a $150,000 dedicated digital mastering desk. [Gabe]
 
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