Why does impedance matching play an important role in coax cables? What happens if i neglect the fact? Didn't know that even telephone wires resist/screen external signals.
The best parallel I know is if you imaging a wave travelling along a canal with parallel walls.
It will loose energy over time, but as long as the walls are parallel, it just travels smoothly.
If there is a sudden change in the canal width, some of the wave energy gets reflected back - that's an impedance mismatch.
Electrically, if you have a fixed source resistance or impedance and a load resistance or impedance, the lost energy is transferred to the load when the load is the same value (resistance or impedance) as the source.
Impedance matching gives optimum energy transfer.
Also, mismatches reflect energy and can cause standing waves or make the cable itself appear a different impedance, if the transmission line is more than a small fraction of a wavelength long.
A twisted pair in itself does not provide "screening" - but as both cores or wires are, on average, the same distance from any interference source, it adds equally to both wires!
It's "Common mode" signal vs "differential" signal.
So, the load at the end, only connected between the two wires, does not "see" the signal added to both wires; it does not cause any difference between the two.
(A analog normal telephone has no direct ground, so only sees the voltage across the line pair.)
That's why eg. professional audio gear can be spread out around a building or auditorium, powered from different sources, but not get ground hum or earth loops - all the connections are balanced line, screened twisted pair The only signal input each "sees" is the difference between the two wires, not any differences in voltage to ground, or noise pickup on the cables.
(Think of holding a spirit level across both hands; side to side tilt is the differential, wanted signal; The noise pickup adds the same up and down movement to both hands, without affecting the tilt).