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In MySQL, I realised that update is used to update a record or row in a table. Then what does alter do that is so different?

Appears like both are the same.

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ALTER is a Data Definition Language (DDL) statement. Whereas UPDATE is a Data Manipulation Language(DML) statement. 

ALTER will be used to update the structure of the table (add/remove field/index etc). Whereas UPDATE will be used to update data.

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