Basically, you have a "waterblock" attached to the CPU...the heat is transferred to the block, which in turn transfers the heat to the circulating water. The water is passed through some sort of radiator that has a cooling fan. The cooling fan transfers the heat into the room air, then the cool water is recirculated back to the CPU/waterblock again...
There is a bit of maintenance involved...filling it with water, adding chemicals to the water to prevent corrosion, periodically checking for leaks, keeping the radiator & it's cooling fan dust free, inspecting the water block for signs of corrosion, to name but a few...basically, there are several components that have the potential for failure, whereas with aircooling, you really only have one...the fan!
I agree with Atomicboy...your temps are excellent...there's absolutely no need for water cooling on your system...don't waste your money
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