I am trying to understand the logic and functionality behind Scriptable Objects. I 've watched the provided video 2 times and I keep getting lost. I tried to follow the code as well but with no luck.

Can someone please explain to me what the Scriptable Objects are and how they work in a few lines?

[EDIT:] This Video as well as the following answers helped me understand Scriptable Objects and even better incorporate them in my own game.