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Stem Cells

I really don't understand the concept of Blastocyst in stem cell research. My professor mentioned something about inner and outer. What is he referring to?

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Stem cells have the ability to divide for indefinite periods in culture and to give rise to specialized cells. They are best described in the context of normal human development. Human development begins when a sperm fertilizes an egg and creates a single cell that has the potential to form an entire organism.

This fertilized egg is totipotent, meaning that its potential is total.
In the first hours after fertilization, this cell divides into identical ...