well there is a bunch of living stuff in the sand, like alots of bacterias, sometimes there are bristleworms, pods, starfish ect. thats why it's "live"
same as the difference between Live Rock and Base Rock. If you added Marine sand to your tank eventually it would become live just as base rock will eventually become live (over time in a well established system). Live Sand is great for start ups because of the beneficial bacteria that is already there.
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