Sessions are stored per-user in memory(or an alternative Session-State) on the server. Sessions use a cookie(session key) to tie the user to the session. This means no "sensitive" data is stored in the cookie on the users machine.
Cookies are stored per-user on the users machine. A cookie is usually just a bit of information. Cookies are usually used for simple user settings colours preferences ect. No sensitive information should ever be stored in a cookie.
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