Salesforce: Hey, Did You Know?: What is the difference between Lightning Application events vs Component events?

Application Events:

Application events follow a traditional publish-subscribe model. An application event is fired from an instance of a component. All components that provide a handler for the event are notified.

 

Component Events:

A component event is fired from an instance of a component. A component event can be handled by the component that fired the event or by a component in the containment hierarchy that receives the event.

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