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In XML, elements are the building blocks of a document and consist of start and end tags with content in between. Each XML document contains one or more elements which serve as containers for data or content. Tags in XML begin with the less than character and end with the greater than character, with start tags having the element name inside angle brackets and end tags having the same name with a preceding slash. Unlike HTML, where predefined tag names are used, XML allows users to define their own tags for organizing and structuring data.