Firmware updates are released by camera manufacturers to enhance the inbuilt operating system of your camera. Usually, the enhancements will add features found on later model cameras and will give your camera a general freshen up.

Panasonic recently released a firmware upgrade for their Lumix DMC-LX3 digital compact camera.
The 14-month-old camera gets a new lease on life with Version 2.0 bringing a host of additional functions . Changes include the addition of white balance bracketing and an expansion of the available exposure compensation, a 20% AF-speed increase at the wide-angle position and a High Dynamic scene mode.

Certainly, a worthwhile update to your camera.

So keep an eye on your camera manufacturer's website to take advantage of firmware updates, if they are available.