Describes the fact or personal belief that the previously stated or shown thought, idea, creation etc. is perceived by the speaker to be amazing in every sense; flawless.
John: " I'm tired of my 6 string guitar, it's the same old thing and it's boring. I'm gonna get a double-neck!"
Steve: " That's pretty cool."
John: "One neck will have 7 strings and the lower one will be a 5 string bass!"
Steve: "Wow, that's not a bad idea."
John: "And it shall be wireless, and cook bacon inside it while you play!"
Steve: "Dude, that's so edge."