Budding is a form of asexual reproduction common to both Hydra (a multicellular freshwater animal) and yeast (a unicellular fungus). In this process, a small outgrowth or "bud" develops from the parent organism's body.
In yeast, this occurs through asymmetric cell division where a new cell bulges from the parent. In Hydra, specialized regenerative cells divide repeatedly at a specific site to form the bud. Once matured, the bud typically detaches to become a new independent individual.
There is an explanation video available below.
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