Use of difference :A noun
The "difference " between you and me is our height . You are short ;I am tall.
The noun difference can either function as a subject and as an object
Use of different : An adjective
Different people think differently.
As we know differ is a verb .From the verb "differ" we get the noun "difference" .From the noun difference we get the adjective "different" and from the adjective different we get the adverb" differently".
We can say that "difference " is a noun functioning as a subject or object and "different" on the other hand is an adjective which modifies a noun .