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AWS credits

Can anybody tell me what exactly amazon web service is? I checked their website and found things about cloud computing and others. I am not familiar with cloud computing (Except I know what it is but don't know how to use it as a programmer).

I participated in codesprint contest and qualified upto 2nd elimination round where I ran out of knowledge and skill. But I am still gonna get $50 aws credit. I just want to know where to use it. There is also something about free tier which allows usage for free upto 12 months. Should I use that or the credit?

Thanks in advance.


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