I've never used nested functions, but have seen references to them in several languages (as well as nested classes, which I assume are related).
I assume nested functions are simply an artifact of treating everything as an object, and if objects can contain other objects then it follows.
Do nested functions have scope (in general, I suppose languages differ on this) just as variables inside a function have scope?
Please add the language you are referencing if you're not certain that your answer is language agnostic.
-Adam
One popular use of nested functions is closures. In a lexically scoped language with first-class functions it's possible to use functions to store data. A simple example in Scheme is a counter:
(define (make-counter)
(let ((count 0)) ; used to store the count
(define (counter) ; this is the counter we're creating
(set! count (+ count 1)) ; increment the count
count) ; return the new count
counter)) ; return the new counter function
(define mycounter (make-counter)) ; create a counter called mycounter
(mycounter) ; returns 1
(mycounter) ; returns 2
In this example, we nest the function counter inside the function make-counter, and by returning this internal function we are able to access the data available to counter when it was defined. This information is private to this instance of mycounter - if we were to create another counter, it would use a different spot to store the internal count. Continuing from the previous example:
(define mycounter2 (make-counter))
(mycounter2) ; returns 1
(mycounter) ; returns 3