I dont understand backlinks

[Parker]

ok so i am getting there with this whole backlink idea and link juice etc but there is somethig that is still baffling me!

if i am doing the SEO for website 1 and i decide i want a link from website 2 which is in the same or similar industry as website 1 (but it has loads and loads of quality links and traffic)
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[hitsandy]

Creation of Back links is good for websites to be optimized well in search engines, the data/information can easily indexed and resulted by the back links.