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Counting Sort is a non-comparison-based sorting algorithm that sorts integers by counting the occurrences of each distinct value in a range and using this information to place elements in their correct positions. It works in π(π+π) time, where π is the number of elements and π is the range of the input values. Counting Sort is efficient for small ranges of integers but unsuitable for sorting non-integer or large-range data due to its space complexity of π(π). It is a stable sorting algorithm when implemented correctly.