Why does bread need kneading?

In: Baking
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It helps get the access gasses out that produce large holes in the bread.

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What is kneading?  Purpose of kneading?  What is kneading the flour?  Why does bread need needing?  Describe kneading and why it is done?  What is the effect of under-kneading?  Why do you use kneading in bread making?