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Hello Rahul,
the difference is that workgroup is a "peer to peer" computer organization where all computers are in the same group but there's no authority for authentication, permissions and access to resources.
The domain instead is an organization of computers where you have at least one authority (called Domain Controller) that holds usernames and passwords so when computers want to authenticate to a given network resource they do it with the domain authority.
I suggest you reading
this that explains better the difference.