What is tracing? Where it used.?

Tracing refers to collecting information about the application while it is running. You use tracing information to troubleshoot an application.
Tracing allows us to observe and correct programming errors. Tracing enables you to record information in various log files about the errors that might occur at run time. You can analyze these log files to find the cause of the errors.
In .NET we have objects called Trace Listeners. A listener is an object that receives the trace output and outputs it somewhere; that somewhere could be a window in your development environment, a file on your hard drive, a Windows Event log, a SQL Server or Oracle database, or any other customized data store.