A Wave Gadget is one of two types of Google Wave extensions. Gadgets are fully-functional applications. According to Google, gadgets are primarily for changing the look and feel of waves, although this seems to only scratch the surface of the potential of a wave gadget.
First: almost any iGoogle or OpenSocial gadget can run within Google Wave. That means thousands of applications that have been already created will work in Google Wave. Second: a gadget built within Google Wave can take advantage of live interaction with multiple users. This means something like a live online game with active participation from all users. In that way, it has similarities to Facebook or MySpace applications, which take advantage of your friend network to make games, quizzes, and applications more meaningufl and useful.
Gadgets are specific to individual waves, rather than to specific users. Thus, it’s not like having a Facebook app on your profile – the gadget belongs to everyone within the wave. They also do not have titles, to better integrate with the actual conversation. Some of the gadgets already built include a Sudoku gadget, Bidder (which turns your wave into an auction), and Maps (which allows for collaboration on a Google Map).
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