What is the difference between Site Definition and Site Template?

Site Definition Site Template
A Site Definition is the main structure of a site, including how it looks, what default lists are there, what default features are activated, navigation structure, etc... Site Template is created from an existing site. When a user customizes a site, template consists of the difference between original site definition and changes made to the site.
Site definition files are placed in WFE  Site template is stored in Content Database and can be seen in solution gallery
It is the core structure and not dependent on Site Template Site template is created using one of the site definitions only, so if the site definition is modified or deleted, custom template will not work 
Customization of site definition is a bit difficult. Site templates are easy to create and customize.
Require admin access on WFE for deploying site definition. Site owner can deploy the site template.
Data/files/content is stored on web server, so performance is better. Templates are in content database so they are less efficient compared to site definition.

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