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A container is a lightweight, standalone, and executable package that includes everything needed to run a piece of software, including the code, runtime, libraries, and system tools. Containers share the host operating system’s kernel but operate in isolated environments. In contrast, a Virtual Machine (VM) includes a full operating system and virtualized hardware, making it more resource-intensive. Containers are more efficient in terms of performance and resource usage, while VMs provide stronger isolation and can run different operating systems on the same hardware.