How does this work?

The Physical Web enables you to see a list of URLs being broadcast by objects in the environment around you. Any object can be embedded with a Bluetooth Low Energy (BLE) beacon, which is a low powered, battery efficient device that broadcasts content over bluetooth. Beacons that support the Eddystone protocol specification can broadcast URLs. Services on your device such as Google Chrome or Nearby Notifications can scan for and display these URLs after passing them through a proxy.