Floating Island
Floating islands are a type of terrain added in version 1.6.
Appearance
A mass of some type of stone with a relatively level top of one or more layers of dirt or sand. Caves in the stone are not unusual, and gems may be found inside those.
Where Found
Floating islands are scattered through the sky, generally 100 blocks or more above sea level but staying below space. They can occur over land or water, and can be positioned over or under each other.
Worlds started before but opened in version 1.6 can have floating islands spawned in areas not yet revealed.
Flora
Fauna
Whatever may spawn because of the flora present.
Notes
As the location of floating islands cannot be predicted, attempting to find them using ladders or creating ramps from blocks is inefficient. The use of a jetpack is effective, with ladders, elevators, portals, or other means of travel installed after discovery.
Floating islands are the only place gem trees can be found.
If all of a floating island's stone is actually marble, there is an improved chance of a Gem tree.
Gallery
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A trio of floating islands
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With palm tree
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With amethyst tree
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With emerald tree
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With ruby tree
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With diamond tree