Containers virtualize only an OS's operating environment..Paravirtualization virtualizes part of an OS's operating environment but also selectively emulates the hardware devices that a virtualized OS requires..A future technique being considered is known as pre-virtualization which is an automated version of paravirtualization..
Examples :
Containers : Linux -VServer
Paravirtualization: Xen
Paravirtualization is better than containers because containers support only native applications..Also a kernel crash would affect all the users on a container based system..However containers offer better performance in some ways..For further material on this refer to the following link :
Linux and Open Source: Containers vs. Xen: Everyone wins!
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