What is difference between
Basically, generic collections are type-safe at compile time: you specify which type of object the collection should contain, and the type system will make sure you only put that kind of object in it. Furthermore, you don't need to cast the item when you get it out.
As an example, suppose we wanted a collection of strings. We could use ArrayList like this:
ArrayList list = new ArrayList();
list.Add("hello");
list.Add(new Button()); // Oops! That's not meant to be there...
...
string firstEntry = (string) list[0];
But a List will prevent the invalid entry and avoid the cast:
List list = new List();
list.Add("hello");
list.Add(new Button()); // This won't compile
...
// No need for a cast; guaranteed to be type-safe... although it
// will still throw an exception if the list is empty
string firstEntry = list[0];
Note that generic collections are just one example (albeit the most commonly used one) of the more general feature of generics, which allow you to parameterize a type or method by the type of data it deals with.