Stem cells are undifferentiated cells that can differentiate into specialized cells and divide through mitosis. There are several types of stem cells including embryonic, adult, and fetal stem cells which have different potency and sources. Stem cell therapy works by stem cells differentiating into the surrounding tissue when signals are received. Current applications of stem cell therapy include treatment of diseases like diabetes, baldness, blindness, brain/spinal cord injuries, and heart disease. However, there are also potential obstacles like ethical concerns regarding the source of stem cells and difficulty with transplantation.