There are several reasons why the folder structure in Magento is significant. A couple of them are listed below:  The many files and resources of the Magento application are organized, which makes it simpler to find and maintain them.  It offers a distinct division of labor as well as a hierarchy of files and resources, which makes it possible for the Magento application to run efficiently.  By enabling developers to insert new code and resources in the proper places, it helps to guarantee that the Magento application can be readily extended and changed.  By keeping private files and resources isolated from those that are exposed to the general public, the Magento application's security and stability are improved.