Example:
You have 50 data in your gridview. You enabled paging for that gridview with page size 10. It will display records 10 per page that is 5 pages,each with 10 records.Now when you try to go to second page of gridview,that is another 10 records,postback occurs(page will be posted back to server,in very basic terms for now,page flicks..:)). If you wrap this gridview inside update panel,then page wont be posted back to server,it will simply display second page.
Well,idea behind is,postback occurs in order to inform server what happened at client side so that server can decide how to proceed further.There will be situation where you dont want this,no need for server interference,Update Panel will do the trick.
So by this what you achieved is called Partial-page update(only gridview display is updated not whole page).
Further, refer to below link
What are actually synchronous/asynchronous operations (C# 5.0 Series)[
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Regards :laugh: