What is the difference between a “Domain Transfer” and a “DNS Update”?

When you update the name servers for your domain name you instruct the DNS servers on the internet to point the traffic for your domain name to our DNS (or “name servers”), which are:

dns1.appliedi.net
dns2.appliedi.net

For a Domain Transfer

First off, when you use this term it usually refers to a Domain Registrar transfer. A domain registrar transfer happens when you transfer your domain from one domain registrar to another. For example, from GoDaddy.com to Enom.com. The new registrar takes over management and billing for your domain.