NLS_INSTANCE versus NLS_DATABASE

Hello, I´ve two questions about the nls_parameters.
What is the difference of the parameters in the views nls_instance_parameters and nls_database_parameters?
And especially and more important, where do different values take effect?
For example what consequences can appear when the parameter nls_date_format (or some other parameter) in nls_instance_parameters and nls_database_parameters is different?
Thanks.

Instance parameters are for the current client session. Database parameters are the default settings for the database. The interaction depends on the parameter and requires a long detailed expaination. The globalization guide provides the best details.

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