"char is a character in a given server dependent character set, nchar is a unicode character. If you want to support multiple languages/character sets, nchar/nvarchar is the way to go."
(above googled)
As I understand it, the unicode character coding takes up more room (so in SQL Server you can store half the amount of characters (max) in nchar compared to char), but can represent a lot more characters - such as arabic/chinese symbols.
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