One of my favorite computer help sites, Of Zen and Computing, published a great article about the difference between flash memory and a hard drive. I really should have thought of this myself, as I often have to explain the difference.
The short answer...
Both are used for long term storage. A hard drive uses spinning magnetic disks. Flash memory is just a chip, it has no moving parts. No moving parts means it is less likely to fail. However, you can't just replace your hard drive with flash memory, yet.
For more information, read the entire article.
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