Social bookmarking is a method for Internet users to store, organize, share, search, and manage bookmarks of web pages on the Internet with the help of metadata. Wikipedia provides a list of 'social software' services.
Instead of saving these resources on local machines, users store them in a web space where they and others can see them.
The stored links are usually described using keywords or tags. Such tagging allows people to search, share and publish the content, as feeds for example.
Common Craft made this 3 minute video explaining "the power of social bookmarking and how it works":
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