What are the First and Second Level caches in (N)Hibernate?

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1.1) First-level cache

First-level cache always Associates with the Session object. Hibernate uses this cache by default. Here, it processes one
transaction after another one, means wont process one transaction many
times. Mainly it reduces the number of SQL queries it needs to
generate within a given transaction. That is instead of updating after
every modification done in the transaction, it updates the transaction
only at the end of the transaction.

1.2) Second-level cache

Second-level cache always associates with the Session Factory object. While running the transactions, in between it loads the
objects at the Session Factory level, so that those objects will be
available to the entire application, not bound to single user. Since
the objects are already loaded in the cache, whenever an object is
returned by the query, at that time no need to go for a database
transaction. In this way the second level cache works. Here we can use
query level cache also.

Quoted from: http://javabeat.net/introduction-to-hibernate-caching/

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