Data Provider is nothing but a set of libraries that is used to communicate with data source. Eg: SQL data provider for SQL, Oracle data provider for Oracle, OLE DB data provider for access, excel or mysql

Data provider provides a base class library... Ex:- using system.data.sqlclient;

The ADO.NET data access mode is designed such that the data set object can be used to represent an in-memory, relational structure with built-in XML support that can exist in a standalone, disconnected manner with its data, which can be passed through various layers of a multitier application. ADO.NET provides a set of interfaces to implement a custom .NET provider for specific data access needs, such as easier maintenance and better performance.A .NET data provider makes it possible to process data directly in the data source or data stored in data sets, allowing for manipulation by the user. Data from various sources can also be combined, or passed between tiers of the application.A .NET data provider serves as a channel to retrieve and update data existing in the data store.A .NET data provider consists of the following core objects: The Connection object is used to connect to a specific data source The Command object executes a command against a data source DataReader reads data from the data source in read-only, forward-only mode DataAdapter populates a data set and resolves an update with the data source A .NET data provider abstracts the database's interaction with the application and therefore simplifies application development. However, to achieve the best performance of an application together with capability and integrity, the right .NET data provider has to be selected based on factors like design, the data source of the application, application type (middle or single tier), etc.