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What is LXC?
LXC is a userspace interface for the Linux kernel containment features. Through a powerful API and simple tools, it lets Linux users easily create and manage system or application containers.
What is LXD?
LXD isn't a rewrite of LXC, in fact it's building on top of LXC to provide a new, better user experience. Under the hood, LXD uses LXC through liblxc and its Go binding to create and manage the containers. It's basically an alternative to LXC's tools and distribution template system with the added features that come from being controllable over the network.
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