Quantum computation offers a promising new kind of information processing, where the non-classical features of quantum mechanics can be harnessed and exploited. A number of models of quantum computation exist, including the now well-studied quantum circuit model. Although these models have been shown to be formally equivalent, their underlying elementary concepts and the requirements for their practical realization can differ significantly. The new paradigm of measurement-based quantum computation, where the processing of quantum information takes place by rounds of simple measurements on qubits prepared in a highly entangled state, is particularly exciting in this regard. In this article we discuss a number of recent developments in measurement-based quantum computation in both fundamental and practical issues, in particular regarding the power of quantum computation, the protection against noise (fault tolerance) and steps toward experimental realization. Moreover, we highlight a number of surprising connections between this field and other branches of physics and mathematics.