In the blogging business linking to some good site can obviously get your relation at a good stage as that site might get traffic and page rank juice from your website. But people normally ignore it or they only do it if they copied their stuff, well now obviously linking back to other website involved two different modes or ways what ever you can call it, well the first is Do-Follow backlinking which is by default or No-Follow backlinking which you can device if you want it that way.
Difference Between No-Follow & Do-Follow Links
So now to understand both modes deeply we first need to know what they really mean and how they really work, their meaning and other stuff.
Do-Follow Backlinks- well normally whenever you link to some website or anything that link needs to be clean and clear to be understood by the Robots that are going to crawl your blog, so adding a Do-Follow tag to your link by adding rel='dofollow' you could easily tell robots to crawl that link and even pass the page rank juice to that website. So earlier you need to add this rel tag but now by default the link that do not have any rel tag is considered as do-follow link. No-Follow Backlinks- well no-follow is entirely opposite to do-follow, so this one simply instructs the robots to not crawl that link and do not pass any kind of page rank juice. So now adding a no-follow is easy you can add it by adding rel='nofollow' tag to your links. So this will not pass any page rank juice to other website.
Which of them is Important & should be Used ?
Now after having a look at the above meaning of what both kind of backlinks actually mean, you might be wondering that what's really important and should be used in order to maintain a good and wealthy blog.
Well according to me and Google's VIP (Sir. Matt Cutts) both of them has there own important place. Both of them should be used with one another. Well No-Following every link is bad as suggested by Matt Cutts, it simply means that you do not trust the whole web and you are linking to somewhat illegal and pirated sites that have bad content on them.
Well Yes No-Follow tag was created in order to tell Robots do not crawl this website as this website does not contain any good content for the public. So if you come across a good website or any other website that contains nice content that obviously you should give it a backlink in order to get that website up for the public use.
So its really important that you only No-Follow those links that contains illegal, pirated, bad, violation kind of stuff, rest should remain Do-Follow. So now another thing people wanna know is if they really want to No-Follow every link then make sure that you do not No-Follow your own Internal Links, make sure those are turned Do-Follow so that your page rank flows universally to every link on your website.
So below are few videos in which matt cutts has explained a lot about what really links are and how they can be useful, so check them out and enjoy :)
Should I use No-Follow Attribute on Internal Links
Well Sir Matt Cutts has provided a nice video, on if you should really add No-Follow attribute to your internal links.
Are No-Follow Links Irrelevant ?
If you think No-Follow links are a total waste then you must have a look at below video by Sir. Matt Cutts that explains a lot.
Will you be Penalized for only using No-Follow Attribute ?
Well you might get penalized if you are only using No-Follow attribute on your backlinks or other links, so make sure you check below video for more in depth knowledge about what you should really do.