Link baiting is when you create content which other people would like to link to, it is preferred by many webmasters and is a good way to build natural links.
Link baiting is the method for creating resources - content / videos / widgets etc. and promoting them so that webmasters automatically link to these resources.
Link Baiting is almost same as link building but in different manner. It creates something naturally that attracts backlinks for your webpage by getting people who link to it from their sites. It is like, you encourage others to link to you. It also helpful for attracting lot of visitors.