(Excerpt from the official YouTube Video)
With Galaxy Nexus you can now easily share contacts, websites, apps, maps, directions and YouTube videos to other people close by. Simply hold two NFC enabled Android phones close to each other and touch to beam and share.
(My Own Thoughts)
NFC is Near Field Communication. It’s a technology for short-range communication that would enable devices to share things instantly. It operates like the RFID card which is scanned closely on a scanner to be able for the latter to read.
In fact, the NFC can only operate at a close distance of 20cm and can establish connection in just 0.2 second. Unlike bluetooth and WiFi, no security problem on sharing files with NFC since you have to let the NFC-enabled devices to be closed enough or touch against each other for it to operate.
The NFC has so many practical applications like RFID tag scanner, debit/credit card substitute (which is already done in Japan), and even key-less security.
The latest to have the NFC is the Galaxy Nexus using the app–Android beam.