Try as I might I don’t really get it, but bascially there’s something about the electrical charge of fingers that makes it possible to distinguish between a finger and, say, a carrot. I have managed to make one work by touching a spoon and then moving the spoon about, but since the spoon was metal and therefore a conductor, I don’t think that counts.
Anyway, may Wikipedia’s endless spring of information never dry out: Touchpad.