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I wanted to know the difference between running the grid with sequential config i.e. XML file v/s running the same with parallel attribute for the tests mentioned in the XML file. I am using Selenium with java and TestNG.

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In case you are running parallel tests, it's more efficient in terms of test duration. You will be able to spin up multiple browser instances and distribute your test cases on them. In the case of sequential test cases will run one after the other. They will wait until one is finished. So implementing parallel tests is always recommended but should be thread-safe.

Sumit Bera
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