User Datagram Protocol (UDP) is one of the core protocols of the Internet protocol suite. Using UDP, programs on networked computers can send short messages sometimes known as datagrams (using Datagram Sockets) to one another. UDP is sometimes called the Universal Datagram Protocol. The protocol was designed by David P. Reed in 1980.
UDP does not guarantee reliability or ordering in the way that TCP does. Datagrams may arrive out of order, appear duplicated, or go missing without notice. Avoiding the overhead of checking whether every packet actually arrived makes UDP faster and more efficient, for applications that do not need guaranteed delivery. Time-sensitive applications often use UDP because dropped packets are preferable to delayed packets. UDP's stateless nature is also useful for servers that answer small queries from huge numbers of clients. Unlike TCP, UDP is compatible with packet broadcast (sending to all on local network) and multicasting (send to all subscribers).
Common network applications that use UDP include: the Domain Name System (DNS), streaming media applications such as IPTV, Voice over IP (VoIP), Trivial File Transfer Protocol (TFTP) and online games.
Reference:
http://en.wikipedia.org/wiki/User_Datagram_Protocol