Tombstones

Tombstone is a new item created in the 1.0.5 patch. It drops when a player with the hardcore setting on dies. It is able to be retrieved and then used much like a sign.

Tombstones can be easily farmed by placing Hellstone or Meteorite directly under the spawn and then creating a new character. The player will die, create a tombstone and then he will spawn again and die again. This can also be done by digging straight down from the spawn so the newly spawned player will die from Fall Damage.

Upon death, the tombstone will fly around for a moment and then place itself in the world on every 2 block-wide free space. 2 Tombstones cannot land on eachother nor can they be retrieved if they cant place themself in the world. Therefore its recommended to have an open wide and flat area if you are going to farm tombstones.