Favicon is a 16×16 px short tiny icon that represents your website in the address bar next to your site URL. Favicon are particularly very useful for creating a brand or identity for your website or blog over the internet. In my case you can you a notice a tiny molecule in the address next to my blog URL and this happens to be my blog logo too. It’s a good idea to have favicon that represents your blog or logo etc. If you don’t have one then most probably the address bar won’t show any icon at all or in some cases your webhost or application icon shows up which is set by default.
Creating a Favicon is made very easy through various online tools, however Dynamicdrive is very easy and i often use it for my blogs. Just upload the image and it will generate the favicon out of that image which you can download with a mouse click.
Once you have created a favicon now it’s the time to upload it to your server, good idea would be to upload it in the root of your Blog or website. Once you have uploaded the Favicon now you need to insert a little piece of code in the head tag of your Blog or Website. Good idea is to put right after the <head> below code
<link href='http://yourdomain.com/favicon.ico' rel='shortcut icon'/>
That’s it. It may take sometime to appear the icon in the address, in Firefox it normally appears as soon as you upload it. However refreshing your cache might help too if you don’t see the icon after a long time.

Pretty cool!