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    <p>As per the previous answer, this is quite a lot to cover, so consider this a short introduction.</p> <p><strong><a href="http://rubygems.org/pages/download">gems</a></strong> are the way Ruby libraries are packaged. They are to Ruby what jars are to Java. Inside a gem file, you find Ruby code (.rb files), but also tests, and a special file giving information on the gem itself, such as its name, dependencies and version (<a href="http://docs.rubygems.org/read/chapter/20">gemspec</a>). Any Ruby project can define the gems it needs via a <a href="http://gembundler.com/v1.2/gemfile.html">Gemfile</a> that just need to declare dependencies. <strong>Rubygems</strong> is the name of the package manager - the tool used to install the packages (while the gems are the packages themselves). Rubygems is now part of Ruby.</p> <p><strong><a href="http://gembundler.com/">Bundler</a></strong> is what make managing gems bearable. Based on your Gemfile, a simple call to bundler using <a href="http://gembundler.com/v1.3/man/bundle-install.1.html">bundle install</a> will download and install all the required gems. Using standard gem command, you would have to install each of them manually, using <code>gem install &lt;gem_name&gt;</code>. Bundler is not part of Ruby (it is itself <a href="http://gembundler.com/#getting-started">packaged as a gem</a>), but it a "de facto standard" for most applications (you will not find many people not using it, and no good reasons not to use it, actually).</p> <p><strong><a href="https://rvm.io/">RVM</a></strong> is a tool allowing you to install multiple versions of Ruby on a machine, switching between them when needed. This can be used to install both a Ruby 1.8 and 1.9, or even a "MRI" (Matz's Ruby, the default implementation) and alternatives (such as JRuby or Rubinius). Note that RVM is not alone in this field, see for instance <a href="https://github.com/sstephenson/rbenv/">rbenv</a>.</p> <p>A <strong><a href="https://rvm.io/gemsets/">gemset</a></strong> in RVM is a set of gems specific to a given context, typically a project. This is useful if you are for example developing different applications, each with its own sets of gems, and want to keep them separate.</p> <p><strong><a href="https://rvm.io/rubies/default">system Ruby</a></strong> is, when using RVM, the Ruby version installed on the machine (ie, not via RVM).</p> <p>If you are just starting, gems and bundler are of interest to you. You can let RVM and gemsets aside for now.</p>
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