Damage reduces the current health of a card. When an avatar or unit loses its last point of health, that card is destroyed.
The damage dealt by an effect to a unit or avatar may not be the same as the damage taken by that unit or avatar. Some effects are triggered by damage being dealt, and others are triggered by damage being taken. These are often the same, but not always.
For example: Sith Shadow Executioner says, "Whenever a unit takes damage during combat, if this unit was played this turn, destroy that unit." If a unit is dealt 1 damage but that unit has a +1 shield, it is not destroyed because the unit actually took no damage.
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