Microsoft SQL Server Compact 4.0 is a free, embedded database that software developers can use for building ASP.NET websites and Windows desktop applications. SQL Server Compact 4.0 is the default database for Microsoft WebMatrix. For enhanced development and debugging capabilities, including designer support, Visual Studio can be used to develop ASP.NET web applications and websites using SQL Server Compact 4.0. Enabled to work in the medium or partial trust environments in the web servers, and can be easily deployed along with the website to the third party website hosting service providers. SQL Server CE 4.0 also provides stronger data security with the use of the SHA2 encryption algorithms for encrypting the databases. Latest version also supports T-SQL syntax enhancement by adding support for OFFSET and FETCH that can be used to write paging queries. Used with ADO.NET Entity Framework, SQL Server Compact now supports the columns that have server generated keys like identity, rowguid etc. and the code-first programming model. SQL Server Compact 4.0 is freely redistributable under a redistribution license agreement. SQL Server Compact 3.5 and SQL Server Compact 4.0 can be installed and work side by side on a desktop.
Here are my earlier article on SQL Server CE
Reference: Pinal Dave (http://blog.SQLAuthority.com)