Favicons - What, how and why?

If you've ever been to a website and noticed a little icon next to the URL that changes with each website, and ever wondered what that was, well now you know. They're called "favicons."

An example of Wikipedia's favicon, using the "W" as a logo.

I recently saw that Blogger has support for favicons and wanted to share with fellow bloggers out there that you can use one.
Favicons just add a little personal touch to your site or blog, and maybe even a bit of branding if you've made a name for yourself.
Most commonly they are found in 16x16 pixel size and can be made with any graphics program, even MS Paint if you're desperate. There are also plenty of online generators to make your own, such as this one:
http://www.favicon.cc/
Note: If you use that link, downloading the icon saves in an .ico extension, which Blogger didn't take. Convert into a familiar image type, (i.e, .jpg, .gif, .png, etc.)
These are also viewable in the blog update reader, so I hope to see some of these on your blogs!