What makes this service even cooler, is they have a Firefox extension to help you speed up the link generating process.   Using the Quick Paste add-on, you can highlight text then grab your URL.  Not much rocket science behind it.

Here is a little more about the Firefox extension from the developer:

Have you ever wanted to send a article or long conversation over IM or post to twitter, only to have it be over the limit on size? What about a cool way to share data without the fuss? Thats what TinyPaste is! Its like TinyURL but for text!

You can pick up the extension on Firefox’s Add-ons web site and learn more about the service behind the handy tool at TinyPaste.com.