I'm learning about rings of fractions and localization. I like the material a lot and feel engaged with it, but I do lack a broader perspective on things. For example, I'm aware of things such as $S^{-1}A$ is the "best" ring for making everything in $S$ a unit (via the universal property), or that localization at a prime ideal gives us a local ring.
These are certainly nice things to have, but I'm wondering if there's a relatively simple example in algebraic geometry or number theory which will demonstrate the usefulness of these notions.
(In particular, a common comment I don't understand yet is along the lines of how constructing rings of fractions is analogous to "concentrating attention to an open subset or near a point." My understanding of algebraic geometry is still very vague at this point and includes only very basic facts about varieties and their correspondence with ideals.)