For almost all software projects, the source code is like the crown jewels - a precious asset whose value must be protected. For most software teams, the source code is a repository of the invaluable knowledge and understanding about the problem domain that the developers have collected and refined through careful effort. Version control protects source code from both catastrophe and the casual degradation of human error and unintended consequences.
Software developers working in teams are continually writing new source code and changing existing source code. The code for a project, app or software component is typically organized in a folder structure or "file tree". One developer on the team may be working on a new feature while another developer fixes an unrelated bug by changing code, each developer may make their changes in several parts of the file tree.
Version control helps teams solve these kinds of problems, tracking every individual change by each contributor and helping prevent concurrent work from conflicting. Changes made in one part of the software can be incompatible with those made by another developer working at the same time. This problem should be discovered and solved in an orderly manner without blocking the work of the rest of the team. Further, in all software development, any change can introduce new bugs on its own and new software can't be trusted until it's tested. So testing and development proceed together until a new version is ready.