Shared hosting involves hosting multiple websites on the same server, where resources (such as CPU, RAM, and storage) are shared among all the websites hosted on that server. This means that the performance of any one website is affected by the other websites sharing the same server.
Dedicated hosting, on the other hand, involves hosting a single website on a dedicated server. This means that all the resources of the server are exclusively available to that website, offering better performance, greater security, and more flexibility in terms of server configurations and software installations. However, dedicated hosting is generally more expensive than shared hosting.