Difference between windows command prompt and Powershell

Command Prompt
Command-line interpreter on OS/2, Windows CE and on Windows NT-based operating systems
Executable name cmd.exe
Default background : Black
It is a native Windows application usually running in Win32 console.
A text file containing a series of commands to be executed is called as Batch files (.bat extension)

Windows PowerShell
Microsoft's task automation framework, consisting of a command-line shell and associated scripting language
Executable name powershell.exe
Default background : Blue
Integrated with the .NET Framework
A text file containing a series of commands to be executed is called as cmdlets (Command lets) (.ps1 extension)