what is the difference between iPhone and iCloud?

what does it mean to upload new photos to icloud for the photo streaming feature on the iphone, but not in iphone when icloud is the new facet for iphone. There's a folder for photos for iphone so it must mean that the upload is sent to iphone right? But how can you tell theses photos be "property" of icloud exclusively when you do not know how it works and it doesn't have a folder intrisically?

ICloud is provided by apple for the clouds service, let users can free storage 5 GB of data .ICloud platform can storage your personal information to apple's servers, through connecting to a wireless network, this information will be automatically inform your hands on every equipment, these devices include iPhone, iPod Touch, iPad, or even Mac computers.

The biggest difference between iPhone and iCloud is that iCloud can support many people share data,and it is cloud service,iPhone is terminal services.

The example that I have given show me that iPhone and iCloud can be at the same step,and the photos that you can download and upload from iCoud,and you should know how does the iCould work!