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Magento proves to be a very powerful, feature-rich, open-source interface for e-commerce. You can fasten a specific event of the Magento such as adding an item to the cart or placing an order, and Magento lets you create a new feature like managing the office location. Each separate task can be performed by creation a Magento module or known as custom extension. Build custom extension for Magento 1 and 2 means creating separate codes for extending the functionalities of Magento, without going through the hassle of interrupting the major Magento files. If you have a better understanding of the Magento module structure, then you can get into a better communication with the developers to modify the add-ons as per your needs.

Magento extensions or modules are basically of three kinds, which are as follows:

Local: This module or extension is developed by a third party to suit your specific needs. These extensions are placed in directory or folder, as [magentodirectory]/app/local/[namespace]/[extensionname].

Community: These are extensions available freely on the Magento website or any other community website. It is placed in directory, as [magentodirectory]/app/community/[namespace]/[extensionname].

Core: It is developed by Magento itself and is available in the default distribution of Magento, as placed in the core directory, like [magentodirectory]/app/code/core/[namespace]/[extensionname].
If these seem a bit Greek to you, then understanding directory and namespace would help to see the things clearly.

Directory: This is the root directory where the folders in Magento are stored.

Namespace: In Magento, this is the directory which you create above the extension. This is actually a category of extension, just like a collection of class in programming. Namespace has a collection of Magento modules or extensions. You need to place the name of your company as namespace. You can create a module in your existing namespace as well, without any restriction.

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The complete flow of Magento

Whenever any URL is typed in Magento, it loads the content through an extension or a module. The module gets created in controller’s index action.

Action: In a normal Model View Framework (MVC), the event handled by the controller is known as action. For instance, clicking a button is the action of the controller’s interest calculator. The same principle works for Magento as well. The action of an extension or a module is the public function of the class controller in Magento.

Controller: A controller in the Model View Framework is the class that controls the business presentation and the logic. Controller is actually a class in Magento. It is created as php file in the controller directory of the extension or module. The controller has a basic format name, like IndexController.php. Here, controller is prefix and Index is the name of the controller.

It is important to understand the nitty-gritty of programming language, to build your e-commerce website in Magento. To create hassle-free custom extension for both Magento version 1 and 2, you need to take help of a reputed professional company, which comes with years of experience. Their highly knowledgeable programmers would understand your business needs and proceed to build a custom extension in Magento to give your business a boost.