What does OSGi solve?

I’ve read on Wikipedia and other sites about OSGi, but I don’t really see the big picture. It says that it’s a component-based platform, and that you can reload modules at runtime. Also the “practical example” given everywhere is the Eclipse Plugin Framework.

My questions are:

  1. What is the clear and simple definition of OSGi?

  2. What common problems does it solve?

By “common problems” I mean problems we face everyday, like “What can OSGi do for making our jobs more efficient/fun/simple?”

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