What is an easy way to generate an Avatar for each user based on their initials?

Question

I've seen some applications automatically generate Avatars for users.  For example, user John Smith would have a square Avatar of a random color with "JS" inside it.

Ray Carnes · Accepted Answer

There is a way to have the Avatar images automatically generated, and you save them and set them on each user via *Settings --> Users --> Users *the way you would any other image:
visit http://codepen.io/leecrossley/pen/CBHca [1]
enter the user's first and last name in line 3 of the JS box (the third box)
right click the image that is rendered below the boxes and save it
edit the user image (below) and set it to the newly created image
Example:

[1] http://codepen.io/leecrossley/pen/CBHca

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