Distance between two points in a new way

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The conventional distance formula is : $$d= \sqrt{(x_1-x_2)^2 + (y_1-y_2)^2}$$ But I have seen that there is another way in which distance is defined which is: $$d= |x_1-x_2|+ |y_1-y_2|$$ Can someone please tell what is this form called? And also, why is it important in coordinate geometry?

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It is called the Taxicab or Manhattan distance. It is useful in problems where oblique lines are not allowed.

You will find more distances here: https://en.wikipedia.org/wiki/Minkowski_distance