Hair grows from structures called hair follicles. In baldness, these follicles die and youre hair falls out. When people have hair transplants the doctor basically takes hair follicles from one part of the body, such as the legs, and places them in the scalp. These hairs then replace the ones that have fallen out.
I think one day a therapy could be made that uses stem cells, so you could form hair in the lab and put it in somesones head.
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