I guess all the wordpress.com users have been anxiously waiting for favicons on their blogs.
The folks at wordpress have come out with Blog+Avatar = Blavatar
Your Blavatar, serves as your favicon as well as displayed in other blogs if you comment on them or link back.
To get blavatars for your wordpress.com blogs, go to Settings in your dashboard and upload an image as your Blog picture. Save the image and then you would be able to see it.
That’s it! You now have a favicon for your wordpress.com blog!
1. If your Blavatar does not appear in the address bar as the favicon then try viewing your blog in a different browser. Clear the cache. It should work.