A piconet is the type of connection that is formed between two or more Bluetooth-enabled devices, one device takes the role of 'master', and all other devices assume a 'slave' role for synchronization reasons.
Where as a scatternet is a number of interconnected piconets that supports communication between more than 8 devices. Scatternets can be formed when a member of one piconet (either the master or one of the slaves) elects to participate as a slave in a second, separate piconet.
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Piconet is an ad-hoc network by linking a group of users which uses blue tooth technology protocols for allowing one 'master' device to interconnect with up to seven active 'slave' devices. Further, up to 255 slave devices could be inactive or packed and the master device can bring into active status at any given point of time. source
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