What is difference between droplink and droplist in Sitecore?

Today one of my friend asked me what is the basic difference between Droplink vs Droplist in very simple words. I replied that...

Droplink:
Droplink  stores the GUID(Unique in space and time) of the item that was chosen by content editor.

Droplist:
Droplist data type only stores the string value of the item that was chosen by the content editor.