In
Client-Side State Management, the state related
information will directly get stored on the
client-side.
In other words, This maintains information on the client's machine using
Cookies, View State, and Query Strings.
In
Server side state management, all the information is stored in the user
memory. Due to this functionality there is more secure domains at the
server side in comparison to Client-Side State Management.
In other words, This kind of mechanism retains state in the server.
Client side state management is
less secure than server side
For more information, check the following link
ASP.NET Client-side state management and Server-side state management
http://msdn.microsoft.com/en-us/library/75x4ha6s.aspx