What is cell differentiation and how is it an example of epigenetics? Solution cell differentiation is transforming of a stem cell into various other types of cells like muscle cells , eye cells , heart cells , lung cells .... regarding how it is an example of epigenetics : since genome is same in all cells of body but rhodopsin is formed in retina cells but not in pancreatic cells.... similarly insulin is formed in pancreatic cells but not in eye cells .... though eye cells contain gene for insulin also .... it happens becuse insulin gene is epigenetically silenced in eye retina cells as hetereochromatin DNA part as opposed to euchromatin part in pancreatic cells..... similarly it applies to rhodopsin and eye pigements are silenced in other parts of body epigenetically but are active in eye...... hope it heps.....