Layar is one mobile application that has definitely managed to get quite some tongues rolling and keyboards rattling this past week, including at the Mobile 2.0 Europe conference in Spain where I just got back from (video demo below).

Layar is a so-called ‘augmented reality browser’, an application that turns you mobile phone’s camera viewer - only on Android-powered phones for the time being - into a full-fledged information portal and local business search engine. It essentially puts an information overlay on top of your camera view, bringing digital data of various sorts into play whenever you’re looking at or for something in the real world.

Check out this Engadget video for more hands-on coverage. And in case you were wondering, you can expect a Layar application for the iPhone 3G S this Autumn (and not Springtime, duh).

:: Read the rest of Layar’s Augmented Reality Browser: Literally More Than Meets The Eye