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Having a downlight fixture installed in a hollow recess makes the light appear to be part of the ceiling itself. This is opposed to suspended or wall lights which will hang down, or stay separate from the ceiling.
Downlights operate at mains voltage (220 Volts) or are powered by a transformer at low voltage (12 Volts). These low voltage lights are often given the acronym Extra-Low Voltage (ELV) or Safety Extra-Low Voltage (SELV).
Another, Fire rated downlights have built-in fire protection that seals the downlight if a fire breaks out in the room below. This will stop – or hinder – the spread of fire and smoke into other areas.