There are different types (I think Colin knows about them better than me). Most of them work by laying down thin layers of plastic and building up one layer on the next. But we have one which uses sheets of paper cut into different shapes.
The best thing i have printed is a prosthetic hand for a little girl who had lost her fingers. We made her a fully functioning hand with moving fingers for less than 5 euros (most medical prosthetic hands cost more than 5,000 euros). As she grows up and gets bigger, we can make her bigger version of the hand, and then print new parts if any get broken.
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