Sharepoint - What is difference between site template and site definition?

A site definition defines a unique SharePoint site. Site definition is a combination of multiple files like .xml, .aspx, .ascx, and .master page, .gif , .doc etc and are stored in C:\ProgramFiles\Common Files\Microsoft Shared\web server extensions\14\TEMPLATE\SiteTemplates directory.

But Site Templates are created from an existing site and are stored in Content database in the Sandboxed Solution gallery.

For more information check following links,

http://sharepointdevindia1.blogspot.in/2013/04/difference-between-site-template-and.html

http://www.enjoysharepoint.com/Articles/Details/differences-between-site-definition-and-site-template-in-sharepoint-2010-20657.aspx

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