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A link is a pointer to a file. Each time you create a file using vim, touch, cp, or by another other means, you are putting a pointer in a directory. This pointer associates a filename with a place on the disk. When you specify a filename in a command, you are indirectly pointing to the place on the disk that holds the information you want.
Sharing files can be useful when two or more people are working on the same project and need to share some information. You can make it easy for other users to access one of your files by creating additional links to the file.