What is the difference between plugins and gems? What are the different uses of each? Where and why would you use one over the other?
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Gems are installed on the system level while plugins are installed on the application level. That means if two or more apps are running on the same server, they can share gems, but each will have its own plugins. For now I'll suggest one to use gems, as they are easier to maintain as applications scale.

serengeti12
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1I disagree, Because we should not install gems system wide because it might pollute and crash my application. In addition to that, will tell one scenario. What will happened if One VPS have many app and if the gems would install as system wise it will crash, So for this we should create Gemset for each and every application. [Use Gemset for Rails app](http://everydayrails.com/2010/09/13/rvm-project-gemsets.html). – Gupta Sep 24 '16 at 07:11