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A screensaver is a type of program that was originally designed to prevent "Phosphor burn-in" on CRT and plasma computer monitors by blanking the screen or filling it with moving images or patterns when the computer is not in use. It is just an executable file with the extension .scr and when this .scr file is placed into the Windows or System directory, Windows treats this file as a screensaver and makes it available as an option in the Display properties window.
Wallpaper is the monitor pattern or picture or any other graphic representation that covers the desktop and acts as a background onto which all the icons, menus and other elements of the operating system are displayed and moved around. The wallpaper always resides in the background, and all work is done on top of the wallpaper.
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