Mood rings were invented in 1975 by Joshua Reynolds and contain thermochromic liquid crystals that change color based on temperature. The crystals absorb heat and refract light at different wavelengths - shorter wavelengths appear more blue while longer wavelengths appear more red. When the body is warm, the crystals refract shorter wavelengths and the ring appears blue/purple. When the body is cooler, the crystals refract longer wavelengths and the ring appears more red. The ring acts like a thermometer to indicate changes in temperature through color changes.