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JSON and SBJSON cannot be compared because one is a standard/protocol, and the other is a language-specific implementation made to use that standard.
JSON stands for Javascript Object Notation. It is just a standard for transmitting data (similar to XML, but more lightweight). Also see this answer for some more info.
SBJSON is one of the many open-source json parsers/generators created with Objective-C. Some other ones are touchJSON and JSONKit. These allow you to use JSON easily when coding Objective-C apps.
As of iOS 5, there is a built in class called NSJSONSerialization to do this for you. If you want to support any iOS version prior to iOS 5, you will need to use something like one of the previously mentioned frameworks.
In any environment, you would typically use JSON for transmitting/receiving data from a remote source, such as a RESTFUL web service.
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