Is background worker a thread? When should I use it?
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Yes, it is basically like a thread, but with extra functionality (events to notify you of progress and when it finishes).
You should use it whenever you need to execute something that might take a while (e.g. a calculation, file or database reading/writing, web requests, etc.) and you don’t want the GUI to appear unresponsive while it is happening:
Read How to: Run an Operation in the Background for an introduction.