Also known as LiveDistro, it is a term that refers to an operating system stored on a bootable CD or DVD and can be executed from it and without the need of installation on the hard drive. The system can return to its original operating system once the LiveCD has been ejected and the computer is rebooted. A LiveCD works by placing the files that should typically be on the hard drive to the RAM, this however will affect the performance since it does cut down on the RAM available for application.
If you are a computer technician, a LiveCD would be very helpful, you can easily retrieve data back from a machine that is refusing to boot up by simply running the LiveCD and copy the data to some external storage device! Also, if you would like to learn to use linux or even just have a feel of it, you can use a LiveCD instead or repartioning your hard drive and risk losing your data!
You can have a look on the currently available LiveCD (300+) by checking the following link: http://www.livecdlist.com/
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