Linux Shell Programming. Implementing a Search, Find and Replace Technique

I have to implement an application in shell programming (Unix/Linux).

I have to search a word from a text file and replace that word with my given word. I have a knowledge on shell and still learning.

I am not expecting source code. Can anybody help me or suggest me or give me some similar solution.

sed -i -e 's/haystack/needle/g' myfile.txt
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