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They are both leavening agents, but baking powder is chemical and yeast is organic. Baking powder causes the release of CO2 by the reaction of a dry alkali and a dry acid which are combined in the powder. Add water, and the alkali and acid react. Yeast, on the other hand, is an organism which consumes carbohydrates, releasing CO2 and alcohol. The organism remains dormant until exposed to liquid and carbohydrates which is why you start yeast in a bowl of sugar water. The organisms wake up, start to consume the sugar, and reproduce.

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Q: What is the difference between baking power and dry yeast?
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