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In this article we review an important class of wireless cooperation protocols known as amplify-and-forward relaying. One or more low-complexity relay nodes assist the communication between sources and destinations without having to decode the signal. This makes AF relaying transparent to modulation and coding of the source/destination communication protocol. It is therefore a highly flexible technology that also qualifies for application in heterogeneous networks comprising many nodes of different complexity or even standards. Recently, two-way relaying was introduced, which is readily combined with AF relaying. It is a spectrally efficient protocol that allows for bidirectional communication between sources and destinations. In order to investigate the potential of wireless AF relaying, we introduce three distributed network scenarios that differ in the amount of cooperation between nodes. New challenges arise in those networks, and we discuss approaches to overcome them. For the most general case of a completely distributed system, we present coherent relaying solutions that offer a distributed spatial multiplexing gain even for single-antenna nodes. Based on real-world experiments, we validate the feasibility of all schemes in our laboratory.