Sign

Signs are non-solid blocks that can display text.

Obtaining
Signs can be crafted from wood planks and a stick.

Usage
Signs may be placed on the top or side of other blocks (including non-solid blocks like fences, glass, rails, and other signs). To place a sign, right-click on a block, enter the desired text (possibly none), and click the "Done" button. To place a sign on a block that can be interacted with by right-clicking (for example, chests, note blocks, etc.), sneak while right-clicking.

Signs placed on the top of a block stand on a short post and will face in the direction of the player who placed it, in any of 16 different directions. Signs placed on the side of a block simply float there, even if the block doesn't make contact with the sign.

When entering text, four lines of text are available, with 15 characters on each line. To switch between lines, the player can press Enter or the up/down arrow keys. The line which is currently selected will have a greater-than and less-than sign (> and <) at the beginning and end of it, respectively. While editing, within a single line text can only be entered and deleted in an ordinal manner, meaning that it is impossible to insert text in the middle of an already typed line - the player must delete and reenter text in order to make edits. Once a line has 15 characters, no more text may be entered on that line. After the editing window is closed, the sign's text can only be changed by removing and replacing it, removing the text in the process. Copy and Paste cannot be performed, and no more than the basic/shifted characters on your keyboard may be entered. The Xbox 360 Edition supports both the Xbox 360 on-screen keyboard and direct editing of text using a USB keyboard or controller chatpad.

With a map editor, the color of sign text can be changed with formatting codes.

Items and mobs can move through sign blocks, but water and lava cannot. Other blocks (including other signs) can be placed on any edge of a sign. If the block the sign is attached to is moved or destroyed, or if the sign is moved by a piston, the sign will be destroyed (dropping itself as an item).

Future
Signs can be created with JSON text which allows complex formatting (colors, bold, italic, etc.), hover and click events, localized translation (for Minecraft technical terms, like "Redstone Repeater", otherwise translations must be provided in language files in resource packs), and the incorporation of scoreboard values into text. Use the command to create JSON signs and the  command to alter JSON signs.

Example:

Signs can post the success count of JSON text hover and click events to scoreboard objectives. The objectives to be used can be specified by running the command or by modifying the sign's NBT data directly with the  command.

Trivia

 * It takes 9 logs to make one stack of 16 signs.
 * Signs can be placed in Adventure Mode.
 * In Pocket Edition, signs are flammable.
 * If a sign is placed on a fence, nether brick fence, cobblestone wall, iron bar or glass pane, the sign will appear to be floating.
 * Interestingly, though signs originally could not stack, the first image of Signs released by Notch showed him with a stack of 60 (presumably 64 with the 3 shown in the picture and one off screen). Signs later became stack-able but only up to 16.
 * Signs are rendered differently from other blocks. They seem to be rendered similarly to entities, and will disappear when you are still much closer to them than regular blocks will.

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