This is a fairly complex topic that involves two biological processes called cell differentiation and gene expression.
The first is the process by which embryonic and adult stem cells transform into whatever cell type or tissue is necessary and is done through a complex series of signalling molecules and proteins and biological pathways that affect the gene expression of that cell.
Gene expression is the means by which your cells turn on or off certain parts of your DNA. You have proteins and enzymes that will inhibit certain portions of your DNA and activate others. This then allows the cell to make only what is necessary for that cell type.
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