Component is analog, HDMI is digital.
Component uses 3 coaxial cables to transfer the video information, the brightness of the image, and the difference between the brightness and red and blue.. the green isn't sent, it's reconstructed from the other info.
HDMI transfers the information digitally. HDMI also allows transmission of audio information, Ethernet, and larger colour spaces, 3D, and much higher resolution (like 4096 x 3112)
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