Explain Magento Versions and License

Answer

There are currently two versions of Magento: the Magento Community Edition and the Magento
Enterprise Edition. The Magento Community Edition is licensed under the Open Software License (OSL) v3.0. The Magento Enterprise Edition is available under a commercial license and requires an annual fee. Both
editions share the same underlying framework. The Enterprise Edition includes several additional
features that are not included with the Community Edition, including gift certificates, customer store
credits, and strong data encryption.

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