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A webcam is a video camera that feeds its image in real time to a computer or computer network. Unlike an IP camera (which uses a direct connection using ethernet or Wi-Fi), a webcam is generally connected by a USB cable, FireWire cable, or similar cable.
Their most popular use is the establishment of video links, permitting computers to act as videophones or videoconference stations. The common use as a video camera for the World Wide Web gave the webcam its name. Other popular uses include security surveillance, computer vision, video broadcasting, and for recording social videos.
Webcams are known for their low manufacturing cost and flexibility, making them the lowest cost form of videotelephony. They have also become a source of security and privacy issues, as some built-in webcams can be remotely activated via spyware.

http://en.wikipedia.org/wiki/Webcam