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These versions are stored in a specific place, typically called a You may, for example, revert the collection of files to a state from 2 days ago.
A developer can copy (checkout) a certain version from the central sever onto their individual computer.
This is typically done via a repository running on a server which is, unlike the local machine of a developer, always online.
Typically, there is a central server for keeping a repository but each cloned repository is a full copy of this repository.
Nowadays it is used by many popular open source projects, e.g., the Android or the Eclipse developer teams, as well as many commercial organizations.
A Git repository contains the history of a collection of files starting from a certain directory.
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It supports creating different versions of this collection.