Web Feature Services (WFS) is an OGC standard method to access and, in some cases, edit (WFS-T) vector data over the Internet. When you need full attribute tables, local style control, or editing, WFS is the way to go. Like most other web services, the biggest advantage over a local layer is that you don't have to copy or load the whole layer at once.
You need the URL of a WFS service to use and a working Internet connection. We will use the public Mapserver demo website (http://demo.mapserver.org/).
To try WFS-T, which involves editing, you will need to get access to a service (typically, password protected) or make one yourself. Do you need a WFS-T test server? This is a great case where OSGeo-Live comes in handy, as you can run your own WFS-T server in a virtual machine at http://live.osgeo.org.


continents or cities works for this example:
For each web service, there is a main URL. When you browse to this URL and add the GetCapabilities parameter (QGIS does this for you), the returned result is an XML file, which describes the services that are offered by the server. The client, QGIS, parses the list of layers for you to choose from, and once you pick the layer(s), uses the additional information in the XML to look up the data at the specific URL.
Data requests are limited to the visible bounding box of the map canvas. This limits the amount of data that is requested. At least this is how it should work. However, features that go off screen will likely be included in their entirety to maintain geometry integrity. So, expect that loading large vector layers over WFS has the potential to be extremely slow.
WFS-T services typically require passwords and are designed to work over the Internet. If you are working within a local network, you may consider just using PostGIS layers. Either way, it should also be noted that versioning and conflict resolution are not automatic, requiring the service backend to be configured to support such features.