Difference between Chrome Apps and Extensions

Question

What is the difference between Chrome Apps and Extensions?

What can you do with apps that you can\'t do with extensions or vice versa?

Answer 1

quoting from http://www.chromeplugins.org/extensions/chrome-web-apps-extensions-spot-the-difference/

(as the explanation is very good)

Major Differences Between Chrome Extension and Chrome Web Apps

One of the major differences between Chrome extensions and web applications is their location. Majority of the Chrome extensions can be downloaded from Chrome Extensions Gallery whereas Chrome Web Apps can be installed from Chrome Web Store.

Another major difference between Chrome extensions and web apps is the fact that while extensions are used to enhance the functionality of the Chrome Browser, web apps run within the browser having a different user interface. Unlike web applications, extensions have little or sometimes no UI component.

From a technical perspective the major difference between Chrome Apps and extensions is the presence of “launch” parameter in apps which indicates Chrome to show when user starts an application installed by him/her.