Widgets are things you can put in your WordPress blog, most commonly in the sidebar without knowing how to edit a web page. They can be dragged and dropped, and allow you to customize many areas of your blog without the need to touch any code.
Widgets are very easy to use and involve you going into the ‘Appearance’ menu item in you WordPress dashboard, then down to ‘Widgets’. Now simply drag and drop the widget to your desired location.
Here is a screencast showing the above steps:
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