Stem cells can either be embryonic stem cells, which are pluripotent and derived from 5-day old embryos, or adult stem cells, which are multipotent and found in adult tissues. Embryonic stem cells can differentiate into all cell types, while adult stem cells are more limited in their potential. Stem cell research aims to understand stem cell biology and potentially use stem cells for regenerative medicine by inducing them to generate replacement healthy tissues. However, there are challenges to clinical applications like immune rejection and the potential for cancer. The source of embryonic stem cells also raises ethical concerns.