Binaural recording is a method of recording sound that uses two microphones, arranged with the intent to create a 3D stereo sound sensation for the listener of actually being in the room with the performers or instruments. This effect is often created using a technique known as dummy head recording, wherein a mannequin head is fitted with a microphone in each ear. Binaural recording is intended for replay using headphones and will not translate properly over stereo speakers. This idea of a three-dimensional or "internal" form of sound has also translated into useful advancement of technology in many things such as stethoscopes creating "in-head" acoustics and IMAX movies being able to create a three-dimensional acoustic experience.
Neumann KU 100 microphone used to record binaural sound
Brüel & Kjær head and torso simulator (HATS)
Stereophonic sound, or more commonly stereo, is a method of sound reproduction that recreates a multi-directional, 3-dimensional audible perspective. This is usually achieved by using two independent audio channels through a configuration of two loudspeakers in such a way as to create the impression of sound heard from various directions, as in natural hearing.
Two microphones set up to record a piano simultaneously, which creates a stereo sound
Diagram of Clément Ader's théatrophone prototype at the Opera during the World Exhibition in Paris (1881)
Bell Labs binaural demonstration at World's Fair
Domestic stereo system, having two speakers