With named pipes you can let processes interact through different shells. Other than that they work like the 'normal' pipe.
Create Named Pipe
Create a new named pipe like so:
[tux@server]$ mkfifo mypipe
You can also specify permissions
[tux@server]$ mkfifo mypipe -m700
Connect different Shells
You can redirect the output of a command into a named pipe like you are used to on Linux.
[tux@server]$ ls -l > mypipe
You can access the pipe in a different shell like so
[tux@server]$ cat < mypipe