Photobucket is a website that provides a limited amount of storage for images (probably NOT at their original resolution, it should be noted), and offers extra storage for a fee along with other services for a price, such as making coffee mugs out of one of your photos and such. It's library can be backed up as part of Time Machine or any other method you use to back things up. Not sure how you would not understand the difference immediately upon trying each, but Photos is a local application on your Mac that organizes and edits your images.
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