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Hoo boy, you just know Hunter S. Thompson would have loved this. A Russian tinkerer going by the name of morskoiboy has created a typewriter (?) that squirts a different type of syrup or liqueur into a glass with every keystroke. That same liquid is used in a big single-character LCD-like display, that shows users what letter they're typing. This means that different cocktails can be created, simply by typing in different words.
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According to morskoiboy, the cocktail typewriter is actually the first thing he's ever built.
The user starts by connecting an upside-down bottle of alcohol (or water or milk) to the top of the machine, as one does with a water cooler. This supplies the base liquid for the drink. Its flow is switched on and off using an IV rate flow regulator, purchased at a drug store.
Each key is connected to a syringe, into which a different type of colored syrup/liqueur has been drawn. When that key is depressed, its syringe's contents are forced into a splitter, where the liquid is routed through a series of tubules and into the display. Different segments of that display will be filled with liquid, depending on what letter it's representing - the letter A is made up of seven segments, for instance, so the liquid from the A key's syringe would be split into seven tubules, each one filling a different segment. The machine also has regulators on the side, to control the speed at which the syrup flows.
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From there, the liquid mixes with the alcohol from the bottle, then proceeds out of a tap on the side of the machine and into a glass. What it will taste like is anyone's guess. "You can try to imagine that each letter can have a taste (L-Lime, A-Apple), a color (R-Red, G-Green), or a name (K-Kahlua, J-Jagermeister)" morskoiboy suggests on his website.
The whole thing is a little difficult to describe, but the video below illustrates the process nicely.