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Disavow bad backlinks for good SEO

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What is disavowing a link? Disavowing a link in terms of SEO is to tell search engines, 'Please do not use this backlink (a link on some other site that has a link to my site) for assessing the quality of my website.' Why disavow backlinks? Search engines use many factors for assessing the reputation and relevance of websites (that includes blogs). One of them, a very important one, is backlinks. The argument here is that if a website A is giving a link to website B, A is in some way endorsing website B. It would also mean that A considers B relevant for the anchor text used by it (website A) to give link to B. Since the number of backlinks seems to be a ranking parameter, it is possible to fool search engines to believe that a website getting many (though useless) links is a good website.  This mechanism can be used to harm others' websites. Many black-hat SEO guys, spammers and even competitors use this very tool of backlinking to harm others' websites and