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Progressive enhancement uses web technologies in a layered fashion that allows everyone to access the basic content and functionality of a web page, using any browser or Internet connection, while also providing those with better bandwidth or more advanced browser software an enhanced version of the page.
This concept is an improvement of the now outdated standard graceful degradation. The main difference being that layout in different browsers no longer need to be identical. The basic contents and functionalities must work in every browser, and from this starting point enhanced layout can be added.
This practice is also meant to encourage end users to use the latest browsers, in order to benefit from the latest design enhancements (as well as many other benefits).