[c#] What is the use of ObservableCollection in .net?

From Pro C# 5.0 and the .NET 4.5 Framework

The ObservableCollection<T> class is very useful in that it has the ability to inform external objects when its contents have changed in some way (as you might guess, working with ReadOnlyObservableCollection<T> is very similar, but read-only in nature). In many ways, working with the ObservableCollection<T> is identical to working with List<T>, given that both of these classes implement the same core interfaces. What makes the ObservableCollection<T> class unique is that this class supports an event named CollectionChanged. This event will fire whenever a new item is inserted, a current item is removed (or relocated), or if the entire collection is modified. Like any event, CollectionChanged is defined in terms of a delegate, which in this case is NotifyCollectionChangedEventHandler. This delegate can call any method that takes an object as the first parameter, and a NotifyCollectionChangedEventArgs as the second. Consider the following Main() method, which populates an observable collection containing Person objects and wires up the CollectionChanged event:

class Program
{
   static void Main(string[] args)
   {
     // Make a collection to observe and add a few Person objects.
     ObservableCollection<Person> people = new ObservableCollection<Person>()
     {
        new Person{ FirstName = "Peter", LastName = "Murphy", Age = 52 },
        new Person{ FirstName = "Kevin", LastName = "Key", Age = 48 },
     };
     // Wire up the CollectionChanged event.
     people.CollectionChanged += people_CollectionChanged;
     // Now add a new item.
     people.Add(new Person("Fred", "Smith", 32));

     // Remove an item.
     people.RemoveAt(0);

     Console.ReadLine();
   }
   static void people_CollectionChanged(object sender, System.Collections.Specialized.NotifyCollectionChangedEventArgs e)
   {
       // What was the action that caused the event?
        Console.WriteLine("Action for this event: {0}", e.Action);

        // They removed something. 
        if (e.Action == System.Collections.Specialized.NotifyCollectionChangedAction.Remove)
        {
            Console.WriteLine("Here are the OLD items:");
            foreach (Person p in e.OldItems)
            {
                Console.WriteLine(p.ToString());
            }
            Console.WriteLine();
        }

        // They added something. 
        if (e.Action == System.Collections.Specialized.NotifyCollectionChangedAction.Add)
        {
            // Now show the NEW items that were inserted.
            Console.WriteLine("Here are the NEW items:");
            foreach (Person p in e.NewItems)
            {
                Console.WriteLine(p.ToString());
            }
        }
   }
}

The incoming NotifyCollectionChangedEventArgs parameter defines two important properties, OldItems and NewItems, which will give you a list of items that were currently in the collection before the event fired, and the new items that were involved in the change. However, you will want to examine these lists only under the correct circumstances. Recall that the CollectionChanged event can fire when items are added, removed, relocated, or reset. To discover which of these actions triggered the event, you can use the Action property of NotifyCollectionChangedEventArgs. The Action property can be tested against any of the following members of the NotifyCollectionChangedAction enumeration:

public enum NotifyCollectionChangedAction
{
Add = 0,
Remove = 1,
Replace = 2,
Move = 3,
Reset = 4,
}