Floating Holograms

So I have seen it done many times, on servers and by plugins alike, but how do they do it? There are many plugins that have floating text, which is clearly a mob's name tag. Does anyone know what mob it is and how it works?

 

@JUSTCAMH
For 1.7 you spawn a horse with an extremely high age and make it ride an witherskull. Then just give it a custom name and set custom name visible to true.
For 1.8 you can just spawn an armorstand, set it invisible and just set the nametag.

 

@MexMaster how old does the horse have to be? And won't the witherskull still be visible? Wont you also hear the horse?

 

@JUSTCAMH A wither skull is invisible if it is facing in direction 0, 0, 0. A standard mapmaker would actually just name the skull, but in Bukkit you can only rename LivingEntities.

 

This API does it all for you, give it a go.