What does "principle of descent" (jus sanguinis) mean?

Section 4, para. 1 of the Nationality Act

A child acquires German citizenship at birth if one of his or her parents is a German citizen. If only the father is a German citizen and is not married to the child’s mother, legal proof or recognition of paternity is required prior to the child’s 23rd birthday.

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What does "principle of birthplace" (jus soli) mean?

Section 4, para. 3 of the Nationality Act

In addition to the principle of descent, since 1 January 2000 German nationality law also recognizes the principle of birthplace (in Latin: jus soli) for the acquisition of citizenship. According to this principle, children born in Germany to non-German parents may, under certain conditions, acquire German citizenship. At least one of their parents must have been a legal resident of Germany for at least eight years and must have a permanent right of residence at the time of the child's birth.

See also obligation to choose citizenship

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What about foundlings?

Section 4, para. 2 of the Nationality Act

An abandoned child found within Germany is considered the child of a German parent until proved otherwise.