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They are both types of AC circuit. A single-phase supply is carried on two wires, a live and a neutral. The neutral is different from the live because it is grounded at the supply transformer.

A three-phase normally has three live wires and a neutral, and it can be used for three separate single-phase supplies to adjoining properties for example, with each property connected from one live wire to the neutral.

The three voltages are timed or 'phased' to peak one third of a cycle apart. If each property was drawing an identical current, the sum current in the common neutral sums to zero, and therefore the neutral has no current in it and therefore incurs no power losses. Thus the losses are half what they would be for three separate single-phase supplies each with its own neutral.

If there were three hundred properties instead of three, the current in the three live wires would be nearly equal nearly all the time, and again the current in the common neutral would be near zero.

This system allows power to be transmitted over distance using half the mass of wire.

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