In the United States, narcotics are classified by the Drug Enforcement Administration (DEA) into different "schedules" based on several criteria.
Schedule I substances are defined as drugs with no known medical application and a high potential for abuse. Schedule I substances include narcotics like cocaine and heroin. Interestingly, however, marijuana also is classified as a Schedule I substance. It remains to be seen if this will change, as some states have voted to legalize marijuana and claim it has medicinal properties.
Schedule II substances include narcotics that are deemed to have therapeutic benefits yet maintain a high potential for abuse. These include morphine, fentanyl, and even "mixed amphetamine salts" (the brand name Adderall).
So, basically, the difference between Schedule I substances and Schedule II is simply in whether or not a drug is deemed to have a valid medical application.
Hope that clears things up for you!
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