According to Learn You a Haskell:
Instead of the data keyword, the newtype keyword is used. Now why is
that? Well for one, newtype is faster. If you use the data keyword to
wrap a type, there's some overhead to all that wrapping and unwrapping
when your program is running. But if you use newtype, Haskell knows
that you're just using it to wrap an existing type into a new type
(hence the name), because you want it to be the same internally but
have a different type. With that in mind, Haskell can get rid of the
wrapping and unwrapping once it resolves which value is of what type.
So why not just use newtype all the time instead of data then? Well,
when you make a new type from an existing type by using the newtype
keyword, you can only have one value constructor and that value
constructor can only have one field. But with data, you can make data
types that have several value constructors and each constructor can
have zero or more fields:
data Profession = Fighter | Archer | Accountant
data Race = Human | Elf | Orc | Goblin
data PlayerCharacter = PlayerCharacter Race Profession
When using newtype, you're restricted to just one constructor with one
field.
Now consider the following type:
data CoolBool = CoolBool { getCoolBool :: Bool }
It's your run-of-the-mill algebraic data type that was defined with
the data keyword. It has one value constructor, which has one field
whose type is Bool. Let's make a function that pattern matches on a
CoolBool and returns the value "hello" regardless of whether the Bool
inside the CoolBool was True or False:
helloMe :: CoolBool -> String
helloMe (CoolBool _) = "hello"
Instead of applying this function to a normal CoolBool, let's throw it a curveball and apply it to undefined!
ghci> helloMe undefined
"*** Exception: Prelude.undefined
Yikes! An exception! Now why did this exception happen? Types defined
with the data keyword can have multiple value constructors (even
though CoolBool only has one). So in order to see if the value given
to our function conforms to the (CoolBool _) pattern, Haskell has to
evaluate the value just enough to see which value constructor was used
when we made the value. And when we try to evaluate an undefined
value, even a little, an exception is thrown.
Instead of using the data keyword for CoolBool, let's try using
newtype:
newtype CoolBool = CoolBool { getCoolBool :: Bool }
We don't have to
change our helloMe function, because the pattern matching syntax is
the same if you use newtype or data to define your type. Let's do the
same thing here and apply helloMe to an undefined value:
ghci> helloMe undefined
"hello"
It worked! Hmmm, why is that? Well, like we've said, when we use
newtype, Haskell can internally represent the values of the new type
in the same way as the original values. It doesn't have to add another
box around them, it just has to be aware of the values being of
different types. And because Haskell knows that types made with the
newtype keyword can only have one constructor, it doesn't have to
evaluate the value passed to the function to make sure that it
conforms to the (CoolBool _) pattern because newtype types can only
have one possible value constructor and one field!
This difference in behavior may seem trivial, but it's actually pretty
important because it helps us realize that even though types defined
with data and newtype behave similarly from the programmer's point of
view because they both have value constructors and fields, they are
actually two different mechanisms. Whereas data can be used to make
your own types from scratch, newtype is for making a completely new
type out of an existing type. Pattern matching on newtype values isn't
like taking something out of a box (like it is with data), it's more
about making a direct conversion from one type to another.
Here's another source. According to this Newtype article:
A newtype declaration creates a new type in much the same way as data.
The syntax and usage of newtypes is virtually identical to that of
data declarations - in fact, you can replace the newtype keyword with
data and it'll still compile, indeed there's even a good chance your
program will still work. The converse is not true, however - data can
only be replaced with newtype if the type has exactly one constructor
with exactly one field inside it.
Some Examples:
newtype Fd = Fd CInt
-- data Fd = Fd CInt would also be valid
-- newtypes can have deriving clauses just like normal types
newtype Identity a = Identity a
deriving (Eq, Ord, Read, Show)
-- record syntax is still allowed, but only for one field
newtype State s a = State { runState :: s -> (s, a) }
-- this is *not* allowed:
-- newtype Pair a b = Pair { pairFst :: a, pairSnd :: b }
-- but this is:
data Pair a b = Pair { pairFst :: a, pairSnd :: b }
-- and so is this:
newtype Pair' a b = Pair' (a, b)
Sounds pretty limited! So why does anyone use newtype?
The short version The restriction to one constructor with one field
means that the new type and the type of the field are in direct
correspondence:
State :: (s -> (a, s)) -> State s a
runState :: State s a -> (s -> (a, s))
or in mathematical terms they are isomorphic. This means that after
the type is checked at compile time, at run time the two types can be
treated essentially the same, without the overhead or indirection
normally associated with a data constructor. So if you want to declare
different type class instances for a particular type, or want to make
a type abstract, you can wrap it in a newtype and it'll be considered
distinct to the type-checker, but identical at runtime. You can then
use all sorts of deep trickery like phantom or recursive types without
worrying about GHC shuffling buckets of bytes for no reason.
See the article for the messy bits...