This is a QR Encoder!! Duh?
Do you mean this encoder or the QR itself?
If you're talking about my encoder, trust me this thing is terribly simple... I just get the input from the user using a form, then package the data according to the “standards” which are shaky at best. Once the data is in the correct format, I send it to the Google Charts API to generate the QR Code.
If you're are talking about the QR Code itself... Then the answer is magic. Honestly, I do not know exactly how it works, but I'm fairly confidant that it works just like normal 1D barcodes (like the ones on stuff you buy). Oh whats that? How to 1D barcodes work?? Ummmm, they too are magical. There is a little gnome in the checkout-box-a-ma-jigger that speaks barcode language and he reads every item that the checkout person passes over it. Sometimes they don't get it the first time so the checkout person hasta do a few times. Once the gnome finishes reading it (and they are quick readers) he then makes this beeping noise. “BEEEEEEP!” Like that. Magic gnomes.
I had a few good ideas when I started programming this a few days ago... But I forgot now. Maybe you can use them on your personal blog or website to give people your contact information. Or maybe you could send a secret message to someone! Or maybe instead of tagging your signature in graffiti, you could tag your QR signature!! If you have any good ideas on uses for these things feel free to let me know.