What is the difference between making an Async web service call and making a Synchronous web service call in another thread?

If you make an asynchronous Web service call, the UI might be tied up for a brief period during DNS resolution. BeginGetResponse method resolves DNS before it makes the asynchronous method call to get the response. So if DNS resolution takes any time (it's usually quite fast, but sometimes it can take seconds), the UI will be unresponsive for that period.

Making a synchronous call in the background will tie up a thread for the duration of the call.

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