What is the difference between indy-node and indy-sdk?

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I would like to know the difference between indy-node and indy-sdk? When to use indy-node and when to use indy-sdk. Is indy-node using indy-sdk internally?

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The indy-node is a source code for a node running as part of the Indy distributed ledger (DLT) network.

The indy-sdk works as a client for DLT but it also contains functions that don’t require communication with the DLT such as manipulation with DIDs and verifiable credentials and secure storage for them.

Let’s say you want to build an SSI wallet. Regardless it’s for an issuer, holder, or verifier, you would use indy-sdk. Then you would use indy-sdk to connect to the DLT and create a credential schema as an issuer or verify the proof against the revocation registry as a verifier. You can use indy-node to run DLT on your localhost or build your own network or you can go and use any publicly running instance of Indy DLT such as Sovrin.

To summarize, the indy-node is not using indy-sdk internally. If you want to run your own DLT network, use indy-node. If you want to build SSI applications, use indy-sdk.