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RSS stands for Really Simple Syndication, and is another way to say newsfeed.
RSS for the web user: An easy way for you to keep updated automatically on websites you like. Instead of you having to go to websites to see if they've written a new article or feature, you can use RSS to get them to tell you every time they have something new.
RSS for the web developer: RSS is an XML format with which you can post short site summaries describing recently added or updated items and links. Those postings are then scanned automatically by programs called RSS readers to deliver specialized news-wire-style "feeds" to interested readers. These feeds, or news channels, are like personally tailored executive summaries containing dozens or even hundreds of headlines on a specific topic. Having a newsfeed is very useful for leading people to your website.
More newsfeed info here: newsfeed-explain.html, newsfeed-howto