Basic Dot Net Question:

Answer #1
The serialization is the process of converting the objects into stream of bytes.
they or used for transport the objects(via remoting) and persist objects(via files and databases)

Answer #2
When developing smaller applications that do not have a database (or other formal storage mechanism) or data that doesn’t need to be stored in a database (such as the state of a web application), you often still would like to save the data for later retrieval. There are many ways to do this, but many of them are subject to a lot of extra code (work) and extra time spent debugging. With .NET, there is now an easy way to add this functionality to your code with only a few lines of easily tested code. This easy way is called serialization.

Serialization is the process of storing an object, including all of its public and private fields, to a stream. Deserialization is the opposite – restoring an object’s field values from a stream. The stream is generally in the form of a FileStream, but does not have to be. It could be a memory stream or any other object that is of type IO.Stream. The format can be anything from XML to binary to SOAP.