There are alot of great explainations to how holograms work:

http://www.docstoc.com/docs/5925759/how-do-3d-holograms-work

http://science.howstuffworks.com/hologram.htm

http://www.martin-richardson.com/articles/articlePage.aspx?pageID=pag0003&articleId=art0001

http://www.holography.co.uk/questions/howholwork.htm

The jist of holograms are a series of 2-d images being sourced and transmitted through lights or lasers.

To get technical, I will use wikipedia's explaination:

" In holography, some of the light scattered from an object or a set of objects falls on the recording medium. A second light beam, known as the reference beam, also illuminates the recording medium, so that interference occurs between the two beams. The resulting light field is an apparently random pattern of varying intensity which is the hologram."

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