can someone explain cloaking...how can i use this for my business or to make some money?
Cloaking can refer to either of 2 things really:
1. link cloaking. If you are an affiliate of an affiliate network (like Peerfly) or of a single merchant (like Amazon) they give you a unique link. You promote that link on your own website and anytime anyone uses it to go to a merchant and make a purchase, you get a commission. The problem is that Google will reduce your site's position in the search rankings if it sees that you have an affiliate link on your site. Why? Because you are competing with Google and Google wants merchants to buy their Adwords ads instead of paying you a commission.
So you need to make your link look like it is not an affiliate link. If you use Wordpress on your site their are several good plugins to make affiliate link cloaking very easy. It is almost as easy to do it manually. Just search for "link cloaking" and I'm sure you'll find easy instructions.
Everyone should link cloak rather than use a raw affiliate link. It is safe and effective.
2. content cloaking. This is making your site show different content to different visitors. Usually you use it to show Google and the other search engines, and their manual reviewers, content that will rank your site highly in their search rankings, while showing real people content that will entice them to make a purchase from you or your affiliated merchant.
Another use would be to show Google highly informational content in order to get a high Quality Score for your Adwords ad and then show real visitors who click your ad content that will entice them to buy. This can work to get around Facebook rules as to where their ads link to as well.
This is much more difficult to pull off than link cloaking. If caught by Google your site will be penalized or even deindexed. If using for Adwords or Facebook ads your account can be banned.
This is obviously a simplified explanation and there are many other nuances and uses for cloaking. Content cloaking can be highly lucrative but you need a very secure cloaker which catches all search engine bots and manual reviewers. Typically cloakers just try to filter out bots using the user's user-agent and/or by comparing their ip address to a known database. But their are several other layers of security you need as well.
I belong to a group that cooperatively develops and maintains a whole collection of black hat tools including a robust, secure content cloaker. We have exactly 18 spots still available. If interested PM me and I'll give you a link where you can read about it.