'do follow' is hyperlink inclusion that tells search engines to pass on any credibility or influence to an outbound link. When Google bot visits a website it reads website pages and includes links with 'do follow' attribute and excludes link with 'no follow' attribute.
Do follow links are those hyperlinks which are search engine friendly or you can say that a search engine spider can index the link which is counted as a dofollow backlink.
Contrary to popular belief there is actually no such thing as a 'dofollow' link. It is used to describe basic links. The reason that it has come about is that there are a number of links that use the 'no follow' attribute - which is code for Google not to count the link when using their algorithms for ranking, making it worthless (this has some debate though) So a do follow link is simply a basic link that does not have the no follow attribute and therefore passes on 'link juice'
Dofollow <a hrer="http://digitalpoint.com/">name</a> = Search engine follow this link and is good for ranking a site Nofollow <a hrer="http://digitalpoint.com/" rel="nofollow">name</a> = Just opposite to above.
This is exactly right! Basically, a "dofollow" link is a link without the rel="nofollow" attribute in the <a> link tag. For example, this is a nofollow link: <a href="http://www.website(dot)com" rel="nofollow">link text</a> Regular (dofollow) link: <a href="http://www.website(dot)com">link text</a>