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Typical spark box (ie MSD 6) does not replace points nor coil. Box amplifies the voltage going into coil causing coils output to increase (eg higher energy at spark plugs). At low-to-mid rpm range, such boxes typically pulse the signal to coil via capacitive discharge circuits ... hence Multiple Spark Discharge. Learn lots more about them at msd site http://www.msdignition.com
Let see if I can do this:
The MSD and GM HEI distributors use the "Hall Effect" concept, see the link below for more.
The pickup coil in the distributor generates an alternate pulse that feeds into the MSD or HEI modules for amplification to become a "cleaned" on off signal as a switch to energize the ignition coil for each spark to the plugs.
The Pickup coil unit is an electronic switch that replaces the Point (Mechanical switch).