What's the difference between FAT32 and Extended FAT File System ?

I am looking for a proper difference between FAT and exFAT system. I cannot find a valid difference between both. I want to know that does exFAT replaces FAT or simply it is a kind of entirely new partition. What are the limitations and benefits of new. Will it be possible to run some older applications on the same.

ExFAT is recommended for those system where you cannot use NTFS file system. Those who are looking for a bit higher performance and better output they can use exfat in place of old fat file system format. You can read more about that on wikipedia.