Nofollow links are different from dofollow links, which is a link that allows Google & other search engines to point back to your website.
When you insert a nofollow link on your website, that link will not strengthen nor harm your website’s authority.
For example, if Company Y uses a nofollow link from Company X, the page or blog post used in the link will not be taken into account in the page ranking for Company Y’s ranking.
When you insert external links on your website or posts, it’s important to make sure they are from sites with good authority and. In addition, use a dofollow link as this will impact your blog’s authority. If the link doesn’t have a good authority, it’s important to use a nofollow link so it doesn’t harm your page’s authority.
Learn more about nofollow links and how they differ from dofollow links here.