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An N-Tier application is an application where you have 3 or more physical tiers. I mean with that things like, “Presentation/Client Tier”, “Application/Business Server Tier” and “Data Tier” (a database server in most of the cases) and nowadays we use web services (or even better, WCF Services) to communicate between presentation tier and the application server tier. Here you see a simple & typical picture about N-Tier architecture:
A different matter is that we’d probably design our application as an N-Layer application, I mean, with several logic layers where we implement different logic tasks. For example we could have the DAL layer (Data Access Layer), BLL Layer (Business Logic Layer), BFLL Layer (Busines Façade Logic Layer), WCF Service Layer and several Presentation layers depending of the pattern we use, like MVC (Model-View-Controller), MVP (Model-View-Presenter), etc.. Also, within the N-Layer architecture, you can guess that Entity Framework fits as the DAL Layer (Data Access Classes) as well as using EF entities as our disconnected entities to pass thru all the layers, all right?
BTW, not all N-Layer apps should be N-Tier apps, but all N-Tier Apps must internally be designed as N-Layer. I mean, there are many cases where the less you physically split your model, the better for performance (more tiers is good for scalability but not for pure performance, due to latencies). Remember, N-Layer is about logic layers.
OK!, so if we get back to the N-Tier architecture (physical tiers), like I said, we need remote mechanisms to communicate the client tier with the application server tier (for instance, WCF Services) and therefore when we query the database from the app server tier, to obtain data (like an Order), we keep it as an EF entity, then we disconnect it from the EF context (detach), WCF serializes it and sends that disconnected entity to the presentation tier (client apps & machines).