I'm trying to learn to rename files with the command line, and after browsing around a lot of pages I finally found a command that uppercases the first letter of a file, but the problem is that I want to understand the meaning of each command. The command is:

for i in *; do new=`echo "$i" | sed -e 's/^./\U&/'`; mv "$i" "$new";done

I understand the 'for' kinda... but not the 'echo' or '`' and especially the sed command. if someone has a little patience to explain the meaning of each thing that'd be awesome! Thanks!