Many people initially get confused with the real need for delegates and events. I was one of them and it took me some time to figure it out :-). Recently answered a similar query in ASP.NET forums and thought it would be good if I create a blog post on this topic! Here was the query:
"I was reading an example somewhere of a Bank Class that if the minimum balance is reached you need to inform the rest of the app that the min has reached, but can't we do that by just calling a normal method.
for example: lets say when we deduct some amount from the balance and if minimum reached then call some method to take some action, I am totally missing why do we need delegates and custom events here?"
Thing is in the Bank case, you can definitely call a method, but then it would be simple procedural programming, we need event based programming when we want our code to respond to some events generated by a system.
For eg.: think that windows OS is a system, and we are writing a code (in any language) where we want to capture an event like mouse_click(). Now how would our program know that a mouse click has occured? We can use low level code for it, but since OS is already handling low level code, its best to capture an event raised by the OS.
In other terms, the moment a mouse_click() happens the OS fires an event. The OS doesnt care who captures this event and uses it, it just sends out a notification. Then any code (like ours) can capture that event and use it accordingly. This saves us a lot of time to write code for the same ourselves. And other programs too can use the same event and handle it accordingly.
Similarly, the banking system can be huge, and many other outside applications might be accessing it. The banking system does not know how many such applications there are which need it, or are dependent on it, and how would they handle certain situations like when balance is low, so it simply fires an event whenever low balance occurs, and this event can be used by any other code, besides banking code itself.
Note that each susbcriber to that event can handle that event independently, for eg. the banking code might stop something from executing if balance is low, some other reporting app might send an email in such a case, or some ATM code can stop a particualr transaction and notify the user that balance is low.
Hope this clears things a bit!