In software development, artifacts refer to any file or collection of files produced as a result of a process, including compiled source code, libraries, executables, configuration files, and more. These are the building blocks of your software project and play a crucial role in the final product. Packages, on the other hand, are a specific type of artifact designed for distribution, containing code along with metadata required to resolve dependencies and install correctly. Understanding the difference between artifacts and packages is vital for effective software management and distribution, as it helps make informed decisions about tooling and processes, and choosing the right tools for the job.