Apple's user have been bogged down by the lack of a file sharing mechanism that allows them to share files to the nearby apple users, just like bluetooth. So after a long time, apple computers have heard the plea of their users and provided them with an implementation that allows the users to easily share pics, videos and other supported documents to anyone nearby using a supporting iOS device.
Apple's Airdrop can share apps, webpages, links and almost anything and everything that can be shared on social networking sites like Facebook or Twitter. It uses peer to peer, ad-hoc Wi-Fi file transfer protocol to transmit data from one device to another. The data sent is encrypted so what the user share is highly secure. It uses ios7 share sheet which means that it is build right into share menu and hence can be used from any app that has share button.
Air drop automatically detects any other discoverable devices and show their contact pictures. To share, tap on one or more contacts to send them the file. when the user at other end receives the file, the airdrop shows an alert to accept or decline the transfer of the file. If the user accepts the airdrop,the user is directly taken to the shared files where it can be accessed by the user.
The bad news is that Airdrop is not backward compatible and cannot be used on all devices. It will only be available on iPhone 5, iPod touch 5th generation, iPad mini and iPad 4.