The reason for all that is that seeds carry all the energy they need to germinate within the shell of the seed. High nutrient levels will only burn baby shoots as they emerge from the seed, which is why water and paper is recommended. The main reason the paper towel method is so popular though is that...
1) you can see what's going on and which seeds don't actually germ at all 2) You're less likely to get fungus or other problems harming your delicate roots using tap water (which contains a little chlorine) than you are in soil (particularly soil which is full of humous and manure
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Just make sure you keep the germinating seeds in total darkness, always slightly moist, and not too hot (a very little above room temperature is fine). And handle the germinated seeds with care, not planting too deep.