tagging is also called fulksonomy. according to wiki, fulksonomy is:

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Folksonomy (also known as collaborative tagging, social classification, social indexing, and social tagging) is the practice and method of collaboratively creating and managing tags to annotate and categorize content. In contrast to traditional subject indexing, metadata is generated not only by experts but also by creators and consumers of the content. Usually, freely chosen keyword are used instead of a controlled vocabulary. Folksonomy is modeled after the word taxonomy, hence a folksonomy is a user generated taxonomy.

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Now, when i view it, the taxonomy is usually used by site owner or publisher for categorical purpose, while folksonomy is how the viewers view the site. users add a set of tags to a content as they feel fit, and when the user base grows and more people are participating on tagging contents, these are tremendous information that not only will help users find contents they want quick, but also, these informaiton can serve as a connecting points among viewers to find like minded persons who you can interact with more and to mutually benefit each other.