what is cloaking in seo?

Cloaking can refer to many sub terms and practices. Like what easyarticles said above or it can be cloaking affiliate links via redirecting through another domain etc...
 
A website that uses cloaking recognizes search engine spiders by their IP address. It returns web pages to search engine spiders that are different from the web pages that web surfers see. Usually, the cloaking software creates hundreds of web pages that are optimized for a special search term so that search engine spiders get the impression that the website contains a lot of relevant information about a special topic.

If you often search on Google then you probably can confirm that you can get good results with cloaking. You can often find web pages on Google that have little to do with the description on the result page.
 
Cloaking is a black hat technique and can be cause of site penalize. It is basically design for the confusing the search engines. It shows different information to search engines and surfer see something else while browsing.
 
Cloaking is a search engine optimization (SEO) technique in which the content presented to the search engine spider is different from that presented to the user's browser. This is done by delivering content based on the IP addresses or the User-Agent HTTP header of the user requesting the page.
 
Cloaking is another sleight-of-hand SEO technique. For SEO purposes, cloaking a site is a method of delivering a page based on who is requesting the page. For example, if a web site is using cloaking, when a regular visitor comes to the site, that visitor will see one page. But when a search crawler comes to the site, it sees a much more relevant, better optimized site.
 
Cloaking is a technique used to deliver the content on a Web page to a search engine in such a way that different content than what is delivered to a regular human user appears on the search engine.The goal of cloaking is to boost a website's search engine rank on certain keywords
 
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