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They're completely different, used for different applications (usually). A distance relay uses both current and voltage. A differential relay uses only current. A differential relay usually has harmonic restraint capability, while distance relays ideally track system frequency. Differential relays require fast operation, while distance relays may not be required to operate as quickly. Distance relays have more issues with operating for out of zone problems than differential relays. There are many more, but this gives an idea.

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