How does the "Create Chatroom" feature work?

Here you can create additional public chatrooms to
chat together as a group.
There are 2 types of chatrooms you can create:

• Public Room: Creating a Public room will
  allow anyone to join it. You can also send
  invites from the room to friends who you want should join.
• Password-protected room: Such rooms are
  visible to everyone in the dropdown, but
  members won't be able to join it without a password.