Imagine having a cake with many layers. Each layer above gets smaller and smaller. Obviously the top layer will be the fastest to eat, as it’s the smallest.
Now imagine storage for data. Typically the data stored at the bottom tier (hard drives) is slow. If you move up one step, to the next *cake*, you have the RAM. It’s smaller, it’s faster. Finally you have the top layer of *cake* which is cache. It’s the smallest and fastest.
If you need to process data quickly or often, it’s best to move it to the smaller, faster areas.
This isn’t a perfect analogy, as it’s not just a matter of size. But the idea remains the same.
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