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Volatile data is characterized by its requirement for a constant power supply to retain information. This type of data is stored in the computer's RAM (Random Access Memory), which is cleared once the system is powered down or restarted. This is crucial for understanding how data is managed and preserved during digital investigations.

In contrast, static data refers to data that does not change and can be preserved without a continuous power supply, typically found in non-volatile storage systems like hard drives or flash drives. Stored data encompasses both volatile and non-volatile forms but lacks the specific attribute of requiring power, while cloud data is associated with storage solutions requiring internet connectivity rather than a direct power supply dependency. Understanding the nature of volatile data is essential for forensic professionals when determining the state of data on devices during an investigation, especially when dealing with incident response and data recovery scenarios.