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What are libraries and DLLs really good for?

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DLLs are dynamic binding. Headers are static binding.

If you use headers, you can supply multiple implementations, but you'll need to recompile entire application when one of those changes.

With DLLs, you can change the implementation each time application starts, or even while the application is running.

There tends to be overhead when calling functions in DLLs, the overhead is usually removed or lesser with static binding.

It's a design decision. If your application needs interchangeable modules and could benefit from separate compilation, either for deployment or development, then DLLs are one way of doing it.

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