What are the potentials of icloud in ios app development

what kind of apps can be developed using iCloud integration in cocoa touch? what functionalities does iCloud provide ?

Utilizing the cloud gives app developers a lot of potential;  makes it much easier and faster for them to design apps that have synchronized app storage across all the users iOS devices.  Ex. Games that the users progress is in sync on thier iPhone and iPad; just pick up a device and pick up where you left off.  Productivity apps where projects the user works on are sync'd between devices. Apps that share history and/or bookmark type content.  You get the idea..
Really the sky is the limit..  :)
If your looking for more API specific type information or examples, this may not be the best forum for a thorough answer.

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