"string" is a keyword; you can't use "string" as an identifier.
"String" is not a keyword, and you can use it as an identifier:
string String = "Isn't this confusing?";
That's the only difference. The keyword "string" is an alias for
"System.String"; aside from the keyword issue, the two are exactly
equivalent. typeof(string) == typeof(String) == typeof(System.String).
string is just a shorthand for String. There is no difference
whatsoever in capabilities.
(There's a very slight difference in terms of hoops you need to go
through if you want to name a variable "string", but I suggest you
don't create variables called either String or string.)
I'm not sure what you mean by "create using string"?
I certainly tend to use the C# shorthands rather than the full type
names (eg float instead of Single) but it sounds like you're proposing
something slightly different...
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