SCD-Slowly Changing Dimension

It is capturing the slowly changing data which changes very slowly with respect to the time.

Example:
The address of a custumer may change in rare case. The address of a custumer never changes frequently.

There are 3 types of SCD.

Type1- Here the most recent changed data is stored
Type2- Here the recent data as well as all past data (historical data) is stored
Type3- Here partially historical data and recent data are stored. it means, it stores most recent update and most recent history.

As datawarehouse is a historical data, so type2 is more useful for it.