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Elements in XML are fundamental building blocks with start and end tags that contain content. Each XML document consists of one or more elements, serving as containers for data or content. Tags in XML begin with "<" and end with ">", with start tags containing the element's name inside angle brackets and end tags having the same name with a preceding slash. Unlike HTML, which uses predefined tag names, XML allows users to define their tags. This flexibility is illustrated with an example comparing the use of predefined paragraph tags in HTML versus custom tags in XML for data representation.