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Matt gave a nice explanation of how to make them when he introduced the animated gif challenge in 2012. Here's what he said:
What is an Animated GIF?
An animated gif is an image, of the GIF format (instead of JPG), that has two or more frames. They can loop, or play through just once. The timing in-between frames can be adjusted. The only limitation with gif files is that they have a maximum of 256 colors.
How do I make an animated GIF?
You can make an animated gif by snapping multiple still frames and stitching them together
or
by filming a short video clip and converting it.