A no follow link is a link that does not count as a point in the page’s favor, does not boost PageRank, and doesn’t help a page’s placement in the SERPs. No follow links get no love. Theirs is a sad and lonely life.
As others have put it, do follow allows the 'link juice' of the webpage to be passed but 'no follow' links do not. I ideally you would want to keep the number of no follow links down to a minimum.
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