It represents a strongly typed list of objects that can be accessed by index. it is equivalent to array list class it implement IList<T> generic interface using an array whose size is dynamically increased as required. It provides methods to search, sort, and manipulate lists. When setting ItemSource property of some control(Datagrid control or itemcollection) to every IEnumerable, there is no notification service applied.
ObservableCollection is a generic dynamic data collection that provides notifications (using an interface "INotifyCollectionChanged") when items get added, removed, or when the whole collection is refreshed. it Support INotifyCollectionChanged so we can take some action on property change of observable collection. We bind it to an ObservableCollection, any change in the list is recognized by the control.
P.S WCF service proxy class in Silverlight will use this type of collection by default.
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