Jquery Pluggin shell

Jquery Pluggin shell

  1. (function($) {

  2. }(jQuery));
guys the above is the normal plugin "Shell" in which all the Jquery plugin code goes ! But its really really hard to understand what exactly that shell is doing ? 

now i read about how that shell is suppose to avoid conflict with other javascript on the page and how the ($) might be used by another library . 

but that Jquery plugin shell , still does't make any sense . 

i am asking this question because as a developer i really feel the need to know that that little snippet of code means . 

i have seen a few other ways of how a plugin gets wrapped but this one is said to be the most efficient .