Google Play Services v9.6 update adds Nearby feature to quick settings

Nearby is actually a set of APIs that are available to developers to implement in apps. Nearby uses three different signals to determine when two devices are close enough to connect—Wi-Fi, Bluetooth, and audio. The Wi-Fi component doesn’t actually connect two devices directly over Wi-Fi, but it does compare the list of Wi-Fi access points each device can see. If the list is close or both devices are on the same access point, that’s a good sign they’re very close to each other in the real world.

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