Dye-based ink is made from colorants that dissolve in liquid, while pigment-based ink contains solid particles that are suspended in liquid. Dye-based ink tends to produce more vibrant colors but can fade quicker over time, especially when exposed to light. On the other hand, pigment-based ink is more resistant to fading and offers better longevity, making it ideal for archival purposes. The choice between the two types of ink depends on the desired quality and longevity of the printed materials.