Templates and shortcodes function together to allow a developer to place dynamic content into their code.
Templates are portions of HTML which contain markers that are replaced by dynamic content when parsed e107's parseTemplate()function.
These markers are called 'shortcodes'.
A shortcode is always CAPITALIZED and is surrounded by curly brackets and it may contain letters and underscores. For example: {MY_SHORTCODE}
Each shortcode has a corresponding function/method which is run during the parsing of the template. These functions are always lowercase and begin with the prefix sc_ . eg. sc_my_shortcode(). This means that {MY_SHORTCODE} is replaced by what is returned by sc_my_shortcode().
Shortcodes may also contain parameters which are sent to the corresponding method. For example: {MY_SHORTCODE: x=foo&y=bar}