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A torch is used for lighting dark places, such as underground or for the night. It decreases the chances of a monster spawning in its radius. It can also be used to instantly mine falling blocks such as sand or gravel when placed underneath.
To craft a torch you need to put a stick (or bamboo) in the bottom square and then a piece of coal or charcoal on top of it. You will get four torches.
||Make some torches
||Torches will light up the dark
||Make at least one torch